Who is the best for financing a DVC resale?

[supersnoop]

Disney vacations are a luxury purchase. DVC is a way to save money on that purchase. The best time to start saving money is right now.

The trade off is your commitment. You save money with DVC, but in trade, you make a long-term commitment to the luxury vacation spending.

The argument for paying cash isn't that you can't afford The DVC purchase. Rather, if you don't have the cash, should you really make a long-term commitment to luxury vacations?

If you have to finance, you will not save as much. Depending on your rate, you may not save anything at all. But only you can make that choice. Personally, I paid cash for my DVC contracts, but I have two car loans (at 1.74%). Money is fungible. Should I have paid off the cars with the cash and waited or financed DVC? Everyone's finances are different and only you can make that decision.

Oh, and timeshares don't typically get reported on fafsa forms, so DVC might make it easier to pay for college.

 

[CarolMN]

With respect to all, the OP did not ask for financial advice or whether a DVC purchase should be financed.

Here's the OP's original question - if you have something on-topic to add, feel free:

I am interested in purchasing a DVC resale and wanted to know who is the best company to go through? I have perfect credit and can probably put down like 20% and would like to have it paid off in about five years. Any recomendations from previous experience good or bad is appreciated.

Those of you who wish to discuss the pros and cons of financing are welcome to start a thread on that topic. Thank you!

 

[thebigman65]

With respect to all, the OP did not ask for financial advice or whether a DVC purchase should be financed.

Here's the OP's original question - if you have something on-topic to add, feel free:



Those of you who wish to discuss the pros and cons of financing are welcome to start a thread on that topic. Thank you!

Best post on this thread......

 

[MsTessP]

I have deleted the post I wrote here as I had not seen Carol's post.

 

[Dean]

Oh, and timeshares don't typically get reported on fafsa forms, so DVC might make it easier to pay for college.

Per the FAFSA rules it should be reported but I know many don't.

 

[LAMickey14]

To OP, the answer to your question is credit unions and home equity loans, would give you better interest rates than going through others . Enjoy your purchase of DVC, for me it's not about money, but very good memories and you can never put a price on that.

 

[CarolMN]

With respect to all, the OP did not ask for financial advice or whether a DVC purchase should be financed.

Here's the OP's original question - if you have something on-topic to add, feel free:



Those of you who wish to discuss the pros and cons of financing are welcome to start a thread on that topic.Thank you!

I have deleted several off topic posts.

PLEASE do not make me issue infractions!!!

 

[staceymay00]

Of course everyone's first idea is to go to a HELOC...I would like to know the percentage of people that actually qualify for one. Most big banks will only finance up to 80% of the value with credit unions and some local banks going to 90 or 95% with perfect credit. Last time I checked the housing market hasn't completely rebounded from blowout and this isn't an option for most.

It really depends on where you live and when you bought. We are fortunate to live in an area that has fully recovered and then some, plus we bought our house almost 20 years ago and stayed put instead of upgrading. Our house has doubled in value since we purchased so we have a nice sized HELOC, although we've never come close to withdrawing the full amount because I like keeping the monthly bill required to keep our house as low as possible in case of an unexpected job loss or expense.

For the OP...I'm not sure I would ever finance DVC, just my personal choice, but if I did I might first look at my HELOC since the rate is so low. I would not even consider using our HELOC for that (risking house) unless I knew we had funds we could pull to cover it in an emergency. I sometimes get personal loan offers from an online bank I have an account with, and my DH is a member of a credit union that offers personal loans at a better rate than DVC and timeshare lenders. You could look into that option if you have good credit...and hopefully you are in the financial position of already saving for retirement, plus college if you have kids, and being able to financially cover your DVC payment or sell your contract (commission plus loan might be more than what you can sell for) if your financial situation changes unexpectedly. I think some of the DVC resellers have timeshare lending companies they work with, so you can talk with them about options if you call about a potential contract.