What is the lowest interest rate through Disney

[john23tc]

for purchasing at the BCV for terms of more than 1 year? I believe I read 10.95% but I though my guide said 11.50%.

 

[EROS]

If you're eligible for a home equity loan you should be able to finance at around the PRIME rate (4.75%) with full interest deductibility.

Good Luck,

 

[WebmasterDoc]

Currently, I think the 1 year rate thru DVC is 8.5% and the multi year rate is fixed at 11.5%.

As EROS mentioned, a home equity loan may get you a lower rate right now. However, that rate will NOT be a fixed rate in most cases and will likely rise as the economy improves.

The DVC rates are verrry competitive for Timeshare rates, but there are certainly other options available if you're willing to search them out.

Good Luck!

 

[Terry S]

I belevie the 10.95% financing through Disney was either lower because of the special one time VIP financing or it was because of Direct Debit, I don't remember which it was. Hope this helps. Ask your guide about either of these options.

 

[john23tc]

Thanks for all of the replies. I am thinking about a home equity loan which is about 7.25% fixed at my bank. I don't like the lines of credit that are adjustable, even though they are lower now than the fixed. If I do get an equity loan I was thinking of putting the DVC purchase first on my reward credit card and then paying it off with the loan so I can rack up some bonus points too. My card also has a great rate of 5.24%(prime I believe) but the interest is not deductable.

 

[EROS]

JOHN, Doc is absolutely correct. The lower home equity loans are indeed adjustable ( there was a Prime - 1/2% = 4.25%) in the Boston Globe today. While I wouldn't advocate an adjustable for your primary mortgage, I think that it's worth considering for a DVC purchase of only 10-20K.

Good Luck,

 

[WebmasterDoc]

. I am thinking about a home equity loan which is about 7.25% fixed at my bank.

That would be a good option. I secured a resale a few years ago using a 2nd mortgage on our home at a very good rate (NOT as good as you mentioned though!). It is deductible since it is secured by real estate property (in this case our house). We were able to get this in addition to a traditional home equity loan we already had.

Sounds good!

 

[PinMan]

What's the deal with getting a tax right off using DVC as a second home? Does it matter how you finance it? I like the idea of paying it off with skymiles credit card then using something like a home equity.

 

[EROS]

PINMAN, we used our Delta AMEX Skymiles Card to purchase our ADD-ONS via DVD. Unfortunately, our two resale purchases could not be placed on credit cards.

 

[IslandHap]

Currently, financing through Disney, you get 11.5% with 10% downpayment, 10.95% with 20% down, good for 3, 7, or 10 year terms.

For the 8.5% rate, 50% down, with the remainder financed for 1 year.

Be careful using a home equity loan. Do you really want to put your home at risk for a DVC purchase? If you default on a Disney loan, you still get to keep your house.