DVC closing costs

[imgoingtodisney]

When I first join DVC what hidden costs are there that I wont find out about until we join? Someone said that by financing through Disney the closing costs are paid for by them. How much are the closing costs if we dont finance through Disney?

 

[dianeschlicht]

That would depend on how much and how you finance. A home equity loan would be best right now, but there would be closing costs in that too. That is why DVC financing is a little higher than normal real estate loans are.

 

[drusba]

If you go through Disney, it pays all closing costs (average $450 to $500; and that amount is fairly fixed regardless of how many points you purchase; if you bought resale in the resale market buyer usually pays those) and the price per pioint you pay is the only cost at time of sale. Thereafter, you do pay annual dues beginning from your date of purchase (not date of closing). Those run from about $3.15 to $4.00 per point per year depending on resort.

If you finance through Disney, there are no tacked on finance costs (like points, inspection fees, etc.). If you finance elsewhere it just depends on the financing you get whether there are any additional charges by the financing company.

DVC financing rates are higher than home equity loans if you can get such a loan on existing home to finance Disney. However, Disney rates are generally lower than rates charged by financing companies that do timeshare loans (that market is always at a significantly higher rate than home loans).

 

[jel0511]

As the previous poster stated, if you get a home equity loan there will be closing costs associated with that loan. There will be no closing costs associated with your DVC purchase though. We paid cash for our points and add-on, and we just paid $75 a point for each purchase. No additional fees or surprises. Just remember, that about a month after closing you will get a bill for your prorated maintance fees for this year. They date that the day you contact Disney and put your deposit down and you're put in the computer.

 

[Muushka]

Typically there are not usually any closing costs associated with home equity line of credits. We and several of our friends have never paid for them. I have gotten one through a bank in Florida, and a credit union here in NC. So they are available at no cost at several types of institutions. At very low interest rates now.

 

[Cap]

These are the variables:

Buy Through Disney
- # of points X Cost / point (e.g. 200 * 75 = $15,000)
- less credit for Magical Beginnings, if used (e.g. 200 x $10 = $2000 credit, for a net point cost of $13,000)
- Prorated dues from date of closing to year end.

If you finance through Disney, you have the down payment, and
then the periodic payments with interest.

Buy a Resale
- # of points X Cost / point (e.g. 200 * $65 = $13,000)
- Closing Fee $475 (for a contract of $13,000)
- Resort transfer fee (I think it's $75)
- IF buying at HH, add about $350 for S.C. legal review
- Responsibility for current year dues and point cost are negotiatble in a resale, but not when buying direct from Disney.

If you finance a resale, then you have to compare the interest rate, time period, and down payment to that offerec by Disney.

In the present economy, just be sure you are confident you can handle the payments, if financed, and still afford to travel to your Disney home to use it.

 

[Dean]

Many home equity loans have no closing. Look at all the numbers ands then decide what's best. Of course paying cash will always be the cheapest.