Financing Directly Through DVC - Credit Rate / Score

[BillPA]

The current Poly price is $176 a point, they have a special that includes "free" points, beware you still pay dues on the "free" points.see attached.

http://www.dvcnews.com/index.php/dv...-life-offer-at-copper-creek-polynesian-aulani

 

[amccu18007]

I am going to play devils advocate. My family doesn't mind the studios. We are a family of 5 with an 18, 11 and 9yo. We don't go on vacation to cook, or hang out in the room much. We are at the pool, parks and out to dinner. Also, our children are getting older and their time traveling with us ins't that long. At the end of the day, My husband and I know that they wont be with us and we will still love the fact that we will have monorail access. If you want to stay at Poly, buy Poly.

 

[MrInfinity]

However the benefit of a monorail is huge to us.. With strollers and kids, the benefit of walking out of your room and hoping on a monorail to get to the park is a huge perk.. At other resorts you are folding up strollers to get on a bus while also lugging bags and whatnot.. Also, with the plan for more children it makes things a lot more difficult.. Now granted you could use those points from Animal Kingdom to stay on the monorail, however I suspect that with more and more people renting points you will soon find those rooms are all booked by the 7 month window.. That is another reason the 11 month window is a huge plus...The October and December trips would have me worried if I buy into the Animal Kingdom as there is no guarantee of getting a room at Polynesian or any monorail resort, once the 7 month window approaches.. Don't get me wrong, it won't cancel our plans if we have to stay at the Animal Kingdom..

Stick w your gut here -- you are buying into property, and the #1 rule is location, location, location. If you want to be on the Monorail loop, then don't buy into the AK. It comes down to the backup plan. If you can get into a monorail hotel at 7 mo, great, but if you can't... You're out there at the AK, far from everything. You seem to love the Poly (like us) so buy there! As an alternative, BLT. It's a step above the Poly in location... the walkway to the monorail is awesome, and walking to the MK can't be beat.

Two people above said you'll outgrow the Poly studios and they don't have 2-bedroom units, but they do (?) the Bungalows are 2B's and sleep 7. They cost a lot of points, but are fun to stay in. If you're buying 220 points now, in 10 years you may add on and as you outgrow the studios you'll move into the point range to be doing bungalows. It's also very EASY to own at the Poly to stay in Poly studios but also transfer out to BLT 1B's or 2B's... but it's not easy to own at BLT and transfer into Poly Studios. So again this falls back to if you love the Poly, buy there. Especially if the Studios will work for you for the near-term future.

 

[msjprincess]

Stick w your gut here -- you are buying into property, and the #1 rule is location, location, location. If you want to be on the Monorail loop, then don't buy into the AK. It comes down to the backup plan. If you can get into a monorail hotel at 7 mo, great, but if you can't... You're out there at the AK, far from everything. You seem to love the Poly (like us) so buy there! As an alternative, BLT, where we bought. It's a step above the Poly in location... the walkway to the monorail was awesome, and walking to the MK can't be beat.

Two people above said you'll outgrow the Poly studios and they don't have 2-bedroom units, but they do (?) the Bungalows are 2B's and sleep 7. They cost a lot of points, but are awesome to stay in. If you're buying 220 points now, in 10 years you may add on and as you outgrow the studios you'll move into the point range to be doing bungalows. It's also very EASY to own at the Poly to stay in Poly studios but also transfer out to BLT 1B's or 2B's... but it's not easy to own at BLT and transfer into Poly Studios. So again this falls back to if you love the Poly, buy there. Especially if the Studios will work for you for the near-term future.

So far that is not true at all, unless you go during a very busy time. I booked my August trip at 7 months. The entire summer was available except for 4th of July weekend. Of course it may change but as of now it is not that hard to book the Polynesian 7 months out.

 

[_auroraborealis_]

In general, for Fall Frenzy, buy where you are willing to stay and book.

Outside of fall, it's not difficult to get a LV 1BR at BLT at 7 months, save a few key periods. It's also not difficult to get a SV Poly Studio outside of fall, save a few key periods.

 

[MrInfinity]

So far that is not true at all, unless you go during a very busy time. I booked my August trip at 7 months. The entire summer was available except for 4th of July weekend. Of course it may change but as of now it is not that hard to book the Polynesian 7 months out.

You could get in now because the Poly is not fully sold. This will not be the case for long -- once it's sold out, Studios will be consistently booked. Bungalows will still be attainable due to the high point cost.

 

[Dean]

Thanks for the replies.. Just to clarify, I have no "concerns" with credit.. My credit is on the better side with scores of 760+.. I was merely inquiring on how DVC made their decision if you were preferred, premier, or standard.. The reason being is that I was trying to do the math to ensure that even with adding the finance rate in we would still save money in the long run... We are only choosing the 10 year financing as a "safety net" should some unthinkable financial problem arise. Our plan from the beginning was to throw a large amount down in cash, somewhere where we are comfortable... When we saw the 220 point package with the price of $35,200 plus misc. closing/dues costs we came to a figure of around $36,600 total.. We figured we would drop $16,600 down (roughly 45%) and finance the remaining $20k through Disney direct... The reason for doing this was two fold.. First, we had heard that going direct through Disney was a lot simpler.. I have read that going third party lending you are required to go through a process similar to obtaining a mortgage vs Disney where they run a credit check and if your score is good and you have don't have anything horrible like bankruptcies then you are approved.. Also, at the current moment most time share lenders are in the same ballpark as Disney.. Second, and as I stated above, we figured financing would give us a "safety net".. We could drop make double, triple, quadruple, payments to the principle, however should some unexpected incident occur in the future where we could no longer pay, our payment would drop down to the base payment of roughly $250 (estimated).. Lastly, from what I have read on some of the forums, the interest paid on the loans direct through DVC qualify as tax deductions vs third party lending..

So yes.. Obviously if we had the entire amount I would drop it down immediately.. But the way we estimated the balance we figured we would have the 20k being financed paid off in under 4 years... And that is giving ourselves a relaxed repayment plan..



MsJprincess - Yes.. We have also considered buying at the Animal Kingdom.. We could comfortably get a 250 point package by going resale with Animal Kingdom.. We have stayed there in the past and love the atmosphere.. However the benefit of a monorail is huge to us.. With strollers and kids, the benefit of walking out of your room and hoping on a monorail to get to the park is a huge perk.. At other resorts you are folding up strollers to get on a bus while also lugging bags and whatnot.. Also, with the plan for more children it makes things a lot more difficult.. Now granted you could use those points from Animal Kingdom to stay on the monorail, however I suspect that with more and more people renting points you will soon find those rooms are all booked by the 7 month window.. That is another reason the 11 month window is a huge plus... As I mentioned in another thread, our travel plans normally have us in Disney for 1 week in May/June (end of May/beginning of june) where we normally stay at Beach Club, 4 nights in October (Usually 2nd to 3rd week of October) where we normally stay at Polynesian for the Halloween Party, and 4 nights in December (Always the first week) where we also normally stay at Polynesian for the Christmas party.. The October and December trips would have me worried if I buy into the Animal Kingdom as there is no guarantee of getting a room at Polynesian or any monorail resort, once the 7 month window approaches.. Don't get me wrong, it won't cancel our plans if we have to stay at the Animal Kingdom..

You might consider BLT resale that you can pay cash for, around 150 points total, then once you get to using the system you'll better know what's best for you. Then you could save up and buy 25 retail to get the perks. If you get a good loaded contract, it'll feel more like 170-180 for a few years anyway. It's very likely that what you end up preferring will not be what you think you'll want. Your wording of what you've heard suggests you aren't sufficiently educated enough to make a good decision anyway but that's ultimately something you'll have to decide. One mistake many make, a big one IMO, is trying to buy quickly to get that next trip as a "savings". That choice is often a 5 figure mistake.

 

[mustinjourney]

as a complete aside -- if you're going to use a credit card and would like to delay the payments -- the disney visa card (at least used to) give you a delayed 6 months to pay the balance. Of course, the rewards program kind of sucks with it compared to other credit cards...but if the delayed repayment is useful for you, then it is something to thing about.

 

[bumbershoot]

We looked at resale for the Polynesian (and other resorts) however we like the idea of having the ownership for the next 48 years and being able to pass it down..

As others have said, this is not a reason to buy direct vs resale. If the guide/salesperson indicated it was, recheck everything else he said to you.

Also if you are married I was told they will run both peoples credit and pick the best score.

They didn't look at my credit at all.

Have a think about whether you are sure the Poly will still work in the future. a family of 5 has different needs to a family of 3. as a family of 5 we bought in to stay in 2 bedrooms as we needed space and facilities as the kids grew older. The studio only thing of the Poly would so not have worked for us.

Yep.

I don't even want to stay in a studio with the three of us! I mean, I will, but I don't want to.

I wouldn't buy into the Polynesian with a family of 5. We're a family of 5

See above...family of 3 not wanting to stay in a studio.

Since you say you have approximately 45% of the cost of buying Polynesian direct I would work with that figure. Look at a resale at AKV or SSR. You may be able to get the same amount of points for that amount and not have to finance it all.

Good point.

I have read that going third party lending you are required to go through a process similar to obtaining a mortgage vs Disney where they run a credit check and if your score is good and you have don't have anything horrible like bankruptcies then you are approved.

No matter what, you're getting a mortgage.

We bought direct (and financed), and had to find a notary willing to sign mortgage paperwork. Had to go to a bank that was not our own and have their notaries do it, because our bank at the time (Washington Mutual) was melting down and refused to touch anything with mortgage on it.

The hassle is simply *time* with resale. Immediate vs "wait a month or two". But that's not the financing, it's just dvc twiddling their thumbs.

Lastly, from what I have read on some of the forums, the interest paid on the loans direct through DVC qualify as tax deductions vs third party lending..

Pretty sure that would work with resale financing as well, since it is still a mortgage. Of course first you have to have a primary home mortgage (or fully owned home). We found the interest to be utterly negligible and didn't help us at all once we owned a home and looked at deductions. Even our home's mortgage interest didn't help us; our first year of home ownership, the standard deduction still worked better for us. So that dvc mortgage interest might not be a make or break for you.

However the benefit of a monorail is huge to us..

Go Bay Lake then, for bigger units, IMO.

But remember that strollers aren't forever, and the MK-love isn't forever.

 

[bumbershoot]

fearthis, we bought bay lake direct and we financed it all. I'm not a kneejerk "financing a luxury purchase is bad" person.

But imo Poly studios aren't going to fit your family for long, and I think your guide is stretching some truths. And AP discounts aren't likely to be around forever, so do NOT rely on them. Even the dvc paperwork tells us to not take discounts and current perks into account.

We went into financing with eyes wide open and it turned out to be great for us (dh faced a layoff just after the rescission period and we realized the razor's edge we were on financially but had to make it work), but still despite the best intentions it took us 7 years to pay it off. That's a lot of interest.

You're in a position to do resale and finance almost none of that. I'd do it. My husband and son haven't even stepped foot inside wdw parks since January 2015. I only did once, for free, this February during a membership magic thing during Princess weekend. Oh wait I've run through parks beyond that one night lol.

Times change, interests change, you realize that you can't do Ireland, England, and Orlando every year all years... Or maybe that's just our realization.


Think long and hard. Write down all your guide said and fact check it. Think about the square footage of that studio and about your family. And if the monorail to two parks is really that enticing. Etc.

 

[_auroraborealis_]

And if the monorail to two parks is really that enticing.

Not to mention the monorail's uptime...

http://www.wdwinfo.com/news-stories...-monorail-blue-service-temporarily-suspended/

(oops)

I think you have to use a bit of judgement how much value you put on a monorail. Strollers aren't forever, and even so, the monorail breaks rather frequently. This isn't an outlier event.

 

[supersnoop]

Lastly, from what I have read on some of the forums, the interest paid on the loans direct through DVC qualify as tax deductions vs third party lending.

Mortgage interest on your primary and second home is tax deductible. To qualify as a mortgage, the loan must be secured by real property. Some third party DVC financing is simply a personal loan, which would not qualify, but some third-party loans do secure the loan with the property. There will be extra costs with a mortgage versus a personal loan, but there might also be a better interest rate. Calculate your tax and interest savings against your additional costs to determine which is most beneficial.

Qualifying the timeshare as a second home might be more tricky. If you ever rent out your points, then it likely won't qualify for that year, but consult your tax professional with your specific situation.

 

[Dean]

Mortgage interest on your primary and second home is tax deductible. To qualify as a mortgage, the loan must be secured by real property. Some third party DVC financing is simply a personal loan, which would not qualify, but some third-party loans do secure the loan with the property. There will be extra costs with a mortgage versus a personal loan, but there might also be a better interest rate. Calculate your tax and interest savings against your additional costs to determine which is most beneficial.

Qualifying the timeshare as a second home might be more tricky. If you ever rent out your points, then it likely won't qualify for that year, but consult your tax professional with your specific situation.

It also has to be written and recorded as a mortgage. The other issue on second home is it's essentially impossible to qualify for the free 14 days rental per year on DVC. Timesharelending.net, DVC and Monera do, light stream doesn't. One fallacy some fall into is believing the tax deductibility is an asset, it really isn't.

 

[ktmo]

Another thing to consider - right now seems to be a sellers market. There are not a lot of great contracts out there. Many of them don't get points until 2018 or even later. That means that if you purchase a stripped contract you might have to pay for the next couple of trips on cash. That money factors into your purchasing decision. It might make buying direct a wash. If you are getting an end of the year Use Year, you will be getting 2016 points with a direct purchase. I am not saying to buy direct but it is something to consider.

 

[KAT4DISNEY]

Another thing to consider - right now seems to be a sellers market. There are not a lot of great contracts out there. Many of them don't get points until 2018 or even later. That means that if you purchase a stripped contract you might have to pay for the next couple of trips on cash. That money factors into your purchasing decision. It might make buying direct a wash. If you are getting an end of the year Use Year, you will be getting 2016 points with a direct purchase. I am not saying to buy direct but it is something to consider.

That's all just looking for the right contract, not a reason for direct because there are contracts that are listed every day and it's just about picking the right one which here would likely not be stripped. But there are contracts available that are not stripped. Also on the other end resale is the only way to get a contract that comes with banked, current and all going forward. Direct will be current plus all going forward.

 

[raek]

If financing is a must and you have adequate home equity - take it a home equity loan. You probably won't have any closing costs taking something like this out. You'll just need to check with a few banks. And the rate should be much better than the 10% that is being thrown out for A-tier

 

[crisi]

Not to mention the monorail's uptime...

http://www.wdwinfo.com/news-stories...-monorail-blue-service-temporarily-suspended/

(oops)

I think you have to use a bit of judgement how much value you put on a monorail. Strollers aren't forever, and even so, the monorail breaks rather frequently. This isn't an outlier event.

The monorail may not be forever as well. Its expensive to maintain. It breaks frequently - and unlike Southern California, the weather is a lot harder on the monorails in Florida.

As for discounts, people are talking about a survey sent out recently that longer term members are reading as "which perks are we going to pull next?"

Don't buy for either.

 

[_auroraborealis_]

The monorail may not be forever as well. Its expensive to maintain. It breaks frequently - and unlike Southern California, the weather is a lot harder on the monorails in Florida.

As for discounts, people are talking about a survey sent out recently that longer term members are reading as "which perks are we going to pull next?"

Don't buy for either.

Agreed. Buy to be near MK or Epcot, not for "monorail!"

I think they will duct tape it for a long time, as it ends up hard to demo and you have the Contemporary problem.