someone Explain To Me Like A 3 Year Old...

[funkbucket007]

...exactly how the "financing" of DVC works. I understand that points are $84.00 each & that there is a 150 point minimum, but how long do you have to pay for this? My wife & I are extremely interested in buying in, but we want all of the information possible before we actually talk to someone @ Disney.

I know this question has probably been asked a thousand times & the "search" button is there for a reason, but I'm at work & don't have the time to search right now.

 

[KNWVIKING]

If you purchase thru Disney, they will hold the note for you similar to any other lender. It is usually a 10 year term, acts just like a mortgage,the interest can be deductible. You can pay it off any time without penalty. The only downside is that their rates are high.... or at least higher then most other similar loans. You don't have to finiance thru Disney. You can put it on your credit card it you wish, use home equity line,pay cash, whatever method you chose.

 

[KNWVIKING]

.... at the time of purchase, if you wish to finance thru Disney, it is very simple and painless. Just fill out the forms and wait for approval.

 

[spiceycat]

you can finance for 1, 3, 5, 7 or 10 years - or you could.

the lesser years have a better interest rate.

if you use direct draft instead of sending them a check every month - you also get a break on the interest rate.

 

[Dean]

Originally posted by funkbucket007
...exactly how the "financing" of DVC works. I understand that points are $84.00 each & that there is a 150 point minimum, but how long do you have to pay for this? My wife & I are extremely interested in buying in, but we want all of the information possible before we actually talk to someone @ Disney.

I know this question has probably been asked a thousand times & the "search" button is there for a reason, but I'm at work & don't have the time to search right now.

The price for SSR is not $84 but $95 pp at the present time.

 

[rocketriter]

Just in case you're asking a slightly different question than is answered by the replies above:

Your original $95-per-point purchase (yes, there are some plans that can slightly reduce that price--ask your sales guide) is something you pay only once. You can either pay it up front, or finance it like any other time payment. Disney offers plans for up to ten years; you can also do home equity with your local bank, etc.

After that up-front purchase, you'll pay a yearly membership fee, which is different for each resort but which averages about $4-per point. You pay that annually until your membership expires, which is in 2054 for Sarasota Springs.

Once you've coughed up those fees, your villa stays are "free." As long as you stay within your points budget for the year, your check-out bill will include $00.00 for your room. And, of course, the room you get is nicer than just about anything else available on the grounds. Even the studio, which is most comparable to an ordinary hotel room, includes a kitchenette and down-the-hall access to free laundry facilities. The one- and two-bedroom suites include full kitchens (smaller than you might have at home, but plenty for a vacation), a jacuzzi, and a washer-dryer within your unit. Quarters this nice, paid for with cash, would otherwise cost you between $400 and $900 per night.

 

[tenaseewalker]

SSR actually expires in 2054

 

[av8tor]

$84 is the resale price from Disney for the DVC resorts that are currently sold out. The price for SSR, currently the only "new" DVC resort Disney is selling, is $95 per point. If you are not going to buy at SSR I would not suggest paying the $84 per point thru Disney. You can buy the other DVC resorts thru a resale broker for much less, $65 - $78 per point depending on the resort, closing cost, banked points, etc. Try contacting The Timeshare Store or on of the other brokers metioned here to explore this opiton.

 

[Beca]

Plus, if you decide:

1) not to purchase at SSR, or

2) not to finance thru DVC,

you can get really good rates thru a home equity loan or credit card. We used the Bank One Disney Visa and got 2.9 % for the life of the "loan".



Beca

 

[DVC-Don]

Originally posted by Beca

We used the Bank One Disney Visa and got 2.9 % for the life of the "loan".



Beca

Ah, but if you use a credit card to purchase you can not deduct the interest from your income taxes. To do so, the loan must be secured by the property.

 

[funkbucket007]

Thanks for the replys guys. My wife & I will discuss this today & see what we can figure out.

 

[TheRustyScupper]

Parameters Assumptions:
. . . 20% down payment.
. . . 10.75% Disney interest rate (10 yrs)
. . . 5% home equity interest rate.
. . . $4.00 per point maintenance fee to monthly payment
. . . new sales can be financed by Disney
. . . resales require outside financing
. . . non-Disney sales must add approx $450 in closing costs
. . . no closing costs for sales financed by Disney

Example Monthly Payments: 2yr / 5yr / 10yr mortgages
. . . through Disney - $530 / $246 / $155
. . . through home equity - $501 / $215 / $121
. . . add approx $60/month for maintenance fees
. . . assumed closing costs for resales paid in cash


NOTE: Interest rates can change, so above are reference-only
NOTE: My 3-yr-old didn't have enough allowance for above.