What's the total will be?

[TLPL]

I think I have pretty much decided to purchase a 160 point AKL contract directly from Disney. Can anyone tell me what is the total if I take the cash discount? What are the fees and taxes I have to pay? I need to find out how much I have to borrow from my 401K. Thanks

 

[Donald is #1]

Let's see: 160 pts x ($104 - $8) = $15360. Plus closing which was $235.40 when I bought 160 pts in May.

They will acutally write the contract up for $16640 plus closing and then give you a credit for the discount. You end up paying the discounted price above but the paper work is a bit different. The taxes are included in the closing costs.


Good luck!

 

[ScottakaMickey]

Well, closing costs are higher now, based on my paperwork from this weekend.

They will calculate 104 times 160, which is $16,640. They will want 10% down on that. Which is $1,664. Subtracting that and your discount.

16640 minus 1664 minus 1280 = $13,696. Then add the closing costs, which for me were around $322 and change.

Ultimately you should call your guide and they'll give you the figures.

 

[ScottakaMickey]

I was looking at the paperwork regarding closing costs and it states that if its a cash purchase the costs are approximately $235 as stated by Donald, if you are financing then the costs are approximately $320, which is what I'm doing. Just thought I would provide the clarification.

 

[kjkelley]

When did Disney start charging for closing costs? When I purchased back in FEB. 2005 there were no closing costs through Disney.

 

[chalee94]

i'm sure you've probably already thought about this, but i'll post some links about borrowing from a 401k just in case:

http://www.smartmoney.com/debt/calculator/index.cfm?story=borrow401k

http://moneycentral.msn.com/articles/retire/basics/4714.asp

http://finance.yahoo.com/expert/article/moneymatters/7599

 

[TLPL]

Wow chalee94 thanks for the infos.

I didn't know that about 401k before, I thought it is as easy as borrowing money from my saving account.

 

[chalee94]

hey, it's your money if you still decide to do it.

but you do need to make sure it's worth what you're giving up in tax-deferral benefits (and the risk that if you change jobs, the loan will instantly become due and can turn into a major tax headache.)

good luck!

 

[ScottakaMickey]

This can be different for each 401K, but for mine, I pay interest on the loan and that interest is actually paid to myself. So, while there is a loss against the % increase of that money that the 401K would have earned, but you still are getting 7 to 8% while you pay it off.

It is still a very important decision that has to be made when taking this step.