Financing vacation club

[imgoingtodisney]

How did you finance your vacation club? Did you use their financing or go to your own bank? Is 11.95% high?

 

[Disneyfun1]

I know if you use disney financing, they pay all closing costs. I think if you do your own, you may have to pay it. As far as 11.95% being high, it may be a little high considering the rates nowadays. I am just getting ready to return my paperwork and have disney do the financing. I am having them take it out of our account automatically and i save 1% on the rate-10.95%. If you are able to, you could get a second loan on your home, or homeequity loan type and get a lower rate. The thing that I have been told though is that since it is technically a second home, you get to write off the interest on your taxes at the end of the year, so you will get your money back one way or another, either at the end of the year, or by saving on a lower rate. Besides, you can pay it off at anytime with no penalty. I hope i am right in all this......correct me if im wrong.

 

[Muushka]

With interest rates as low as they are now, a home equity loan would be the best way to go, in my opinion. If possible.

Also, American Express just came out with cash back on their cards. I would charge it to AMEX, write a check from an equity line of credit to pay it when the bill comes in and get a little bonus from the cash back.

 

[BethA]

I still have my papers to send back and we were quoted 14%!!! Why the difference?

 

[wdwnut]

BethA-i'd call my guide and check on the rate. we financed the first 210 points with disney and the second 150 with a home equity. disney made it quite easy to do either way.

 

[TinkerbellRules]

We were quoted 10.95% which we think is high right now. What type of closing costs are involved? If you finance yourself, do you get MB?

Thanks!

 

[dianeschlicht]

I am not sure, but I suspect interest rates will vary by their impression of your ability to pay back. With the current market in home loans, I would definately go with the home equity loan if that is an option for you. We paid cash for our 150 point add on, but we did finance through Disney for our initial contract for about a year. then we paid it off in full. We had some funds that we were going to use for Disney that got tied up in a real estate venture, so had to finance for awhile. Financing through Disney is very easy. It would be even easier if you did it through a home equity loan!

 

[sgtpet]

You need to put down 20% to get the lower interest rates as well as direct withdrawl from your checking account. hope this helps.

 

[travelbug]

I financed through Disney for my orig. purchase last year (9.95%), and then paid cash for an add-on. Then I shopped around for a low-interest home equity loan to pay off Disney. Found that for only 6.5%. Now I'm paying down the principal as quick as I can. I've told myself that I WILL NOT add on any more points until I've paid off the rest of that first purchase. Of course, I tell myself LOTS of things.....

I'm thinking that maybe you can do much better than 10.95%, even if you figure in closing costs you may have to pay by getting your own financing. Just my two cents' worth.

Good luck as you proceed!