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Price

TXDisney

Well-Known Member
Original Poster
I'm looking for a resale. I've been on some websites and have done some research. Looking to purchase a DVC offseason for a week a year at BCV that sleeps around 5-7.

I see prices and all but I'm looking to finance it. In a standard loan about how much will that be a month? Minimum down payment.
 

lostpro9het

Well-Known Member
I see prices and all but I'm looking to finance it. In a standard loan about how much will that be a month? Minimum down payment.
Who are you planning on financing with? Here are a few recommended by the resale vendors:
http://monerafinancial.com/
https://www.lightstream.com/
http://timesharelending.net/Financing

Each of the above have a calculator that will help you determine monthly payment. I'd also recommend contacting your bank as you should be able to get a better rate.

Here is a generic loan calculator that will allow to play around:
http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
 

TXDisney

Well-Known Member
Original Poster
Who are you planning on financing with? Here are a few recommended by the resale vendors:
http://monerafinancial.com/
https://www.lightstream.com/
http://timesharelending.net/Financing

Each of the above have a calculator that will help you determine monthly payment. I'd also recommend contacting your bank as you should be able to get a better rate.

Here is a generic loan calculator that will allow to play around:
http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
The calculator seems off. Saying that a monthly payment would be over $600? That doesn't seem right? I was thinking more around $300-$400.
 

TXDisney

Well-Known Member
Original Poster
I'd plan on putting around 10% down more than likely. Wouldn't change much though. I was thinking a monthly payment would be around 300-400. But 600 plus maintenance fees is more than I planned on.
 

lostpro9het

Well-Known Member
I'd plan on putting around 10% down more than likely. Wouldn't change much though. I was thinking a monthly payment would be around 300-400. But 600 plus maintenance fees is more than I planned on.
Only way to get that monthly payment down is to reduce the initial principal, i.e. bigger down payment, lower interest rate, or extend the years of the loan. Maybe consider a smaller buy-in and work the banking/borrowing of points to go every other year or so or wait until you can swing a larger down payment.
 

TXDisney

Well-Known Member
Original Poster
9% interest rate seems high. If I purchase a timeshare for 30k and put 3k down and closing costs, by no means should the monthly payment be that much. So it has to be the interest rate. I have a 5yr Liam on a truck at 30k and only put 1,500 down and the payment is $420 with a 4% interest rate.
 

Phonedave

Well-Known Member
I'm looking for a resale. I've been on some websites and have done some research. Looking to purchase a DVC offseason for a week a year at BCV that sleeps around 5-7.

I see prices and all but I'm looking to finance it. In a standard loan about how much will that be a month? Minimum down payment.


People have answered your finanace questions, but please do some research into DVC before you buy. Your statement above shows that you do not have a good grasp of how DVC is set up. You do not purchase in "the off season". With DVC you do not purchase a set time. You also do not purchase "weeks"

When you purchase DVC, you purchase points - a 100 point contract, a 160 point contract, etc, you get than many points per year. Those points are used to reserve rooms. Rooms "cost" various amount of points, based on the size of the room, the time of the year, and the particular resort. The point "cost" for a given room can change from year to year (but that does not happen much, and only by a few points). You get your point allottment every year, but you can bank or borrow points in a limited fashion. You are also not gaurenteed a room at given time of the year (with a few exceptions, but not at BCV) . It is first come first served. You get to book 11 months out at your home resort (where you own) and 7 months out at other resorts. IF you decide to try and book a room at the last minute, there may be nothing available.

IF all of the above works for you, then that is great. I own DVC and am very happy with it. But you need to haev a clear understanding of how the DVC timeshare system works, and if it works for you.


-dave
 

TXDisney

Well-Known Member
Original Poster
People have answered your finanace questions, but please do some research into DVC before you buy. Your statement above shows that you do not have a good grasp of how DVC is set up. You do not purchase in "the off season". With DVC you do not purchase a set time. You also do not purchase "weeks"

When you purchase DVC, you purchase points - a 100 point contract, a 160 point contract, etc, you get than many points per year. Those points are used to reserve rooms. Rooms "cost" various amount of points, based on the size of the room, the time of the year, and the particular resort. The point "cost" for a given room can change from year to year (but that does not happen much, and only by a few points). You get your point allottment every year, but you can bank or borrow points in a limited fashion. You are also not gaurenteed a room at given time of the year (with a few exceptions, but not at BCV) . It is first come first served. You get to book 11 months out at your home resort (where you own) and 7 months out at other resorts. IF you decide to try and book a room at the last minute, there may be nothing available.

IF all of the above works for you, then that is great. I own DVC and am very happy with it. But you need to haev a clear understanding of how the DVC timeshare system works, and if it works for you.


-dave
I've done too much research if anything. I think you misunderstood my statement about off-season. What I was meaning by that was a use month, which does determine the amount of points it costs you for your use month. So when I said off-season I was meaning a use month that the per point rate is cheaper. Resales already have a determined use month. I know exactly what I want. I know I want around 200points at BCV. The pricing varies but not by much. It just seems this $600-650 monthly payment doesn't seem accurate. If the same price is 28k and I put 3k and closing costs down that's a 25k loan. A 25k loan should never be $600-650/month.
 

LuvtheGoof

Grill Master
Premium Member
I've done too much research if anything. I think you misunderstood my statement about off-season. What I was meaning by that was a use month, which does determine the amount of points it costs you for your use month. So when I said off-season I was meaning a use month that the per point rate is cheaper. Resales already have a determined use month. I know exactly what I want. I know I want around 200points at BCV. The pricing varies but not by much. It just seems this $600-650 monthly payment doesn't seem accurate. If the same price is 28k and I put 3k and closing costs down that's a 25k loan. A 25k loan should never be $600-650/month.
Well, no, that isn't correct either. Use Year has nothing to do with the cost of your points. Ours is February, and all that means is we get our yearly allotment of points on Feb 1. A December Use Year gets their points on Dec 1, but doesn't cost one penny more or less than Feb. The biggest difference is banking the points. You have to do it prior to the 8 month mark, so for us, we have to decide if we want to bank our points by Sep1.

People on the resale market price their points for whatever they think they can get for them, hence the wide range of pricing for them. Some will be lower if the seller wants a quick sale. Others are willing to wait longer, and see if they can get more for them, but it still has nothing to do with your use year.

A 25k loan will be $500/month with a 9% interest rate, and financed for only 5 years. You need a lower interest rate, or a longer term to get it down to $300 or so.
 

dreamfinder

Well-Known Member
9% interest rate seems high. If I purchase a timeshare for 30k and put 3k down and closing costs, by no means should the monthly payment be that much. So it has to be the interest rate. I have a 5yr Liam on a truck at 30k and only put 1,500 down and the payment is $420 with a 4% interest rate.

Remember that most lenders view timeshare as a crappy product. Outside of DVC, the ability to recoup the spend on the investment is next to nil. See how many you can get on eBay for pennies. Not pennies on the dollar, but pennies. And most lenders won't care that DVC typically holds most of its value, they just see timeshare. So it's a high risk/low reward loan for them. Your truck on the other hand is a tangible asset they know they can easily get much of the investment back if the have to repo/resell it if you default. You may be able to get a different type of loan IE a mortgage or home equity against your house at a lower rate, but normally I'd advise against any sort of financing for DVC just due to the high costs of it.

I've done too much research if anything. I think you misunderstood my statement about off-season. What I was meaning by that was a use month, which does determine the amount of points it costs you for your use month. So when I said off-season I was meaning a use month that the per point rate is cheaper. Resales already have a determined use month. I know exactly what I want. I know I want around 200points at BCV. The pricing varies but not by much. It just seems this $600-650 monthly payment doesn't seem accurate. If the same price is 28k and I put 3k and closing costs down that's a 25k loan. A 25k loan should never be $600-650/month.

As pointed out, use year doesn't really come into play at all. It just determines how the points are released, and when you need to use them by. It mostly matters when it comes to banking windows. If you plan on traveling during a certain time of the year, you will want to choose a use year that lets you bank those points if you need to cancel your trip. So if your use year is Feb, then if you need to cancel a trip in Oct - Jan, you cannot bank those points. So if you plan to travel in Jan, then Feb might not be a good use year for you.

On a 25k loan with 9% interest, you end up having to pay like $6,500 towards the interest, making your total outlay over the 5 years closer to $32,000. Financing DVC isn't pretty at all.
 

Phonedave

Well-Known Member
What I was meaning by that was a use month, which does determine the amount of points it costs you for your use month. So when I said off-season I was meaning a use month that the per point rate is cheaper. Resales already have a determined use month. I know exactly what I want. I know I want around 200points at BCV. The pricing varies but not by much.
.


That has nothing to do with the cost of the contract, or when you can use your points. All that does is set a date when you get a new infulx of points on your contact. Resale point contract prices vary based on how many current year, and banked year points they have left on them, and on what the seller thinks they can get for the contract.

Also, point requirement "off seasons" do not vary by months. They vary by week or day. Most resorts have 3, if not more, seasons. The seasons dates are not contigious, nor are they set in stone. What may be considered a "value" date this year may be considered a "premium" date next year, depending on how the DVC management need to balance point usage.
 

TXDisney

Well-Known Member
Original Poster
A DVC just seems to make financial sense to our family. I for sure go to WDW every year. 7 times in the last 4 years in fact. And my wife is 4 months pregnant with our 1st kid. We wanted a DVC even before a baby and seems to make even more sense with a baby on the way bc we'all for sure go every year with a child. Seems to me a DVC pays for itself as long as you go around 15 times or so during the contract. I'd say we would ewfintaoy do that probably double that in fact.

Looks to me like I need to maybe find a bank that will give me a loan at a lower interest rate than 9%. Or put more down on a down payment. I really want to finalaize something in the next 9 months. My salary more than doubles at the start of 2017 so that's why all this is even doable.
 

dreamfinder

Well-Known Member
A DVC just seems to make financial sense to our family. I for sure go to WDW every year. 7 times in the last 4 years in fact. And my wife is 4 months pregnant with our 1st kid. We wanted a DVC even before a baby and seems to make even more sense with a baby on the way bc we'all for sure go every year with a child. Seems to me a DVC pays for itself as long as you go around 15 times or so during the contract. I'd say we would ewfintaoy do that probably double that in fact.

Looks to me like I need to maybe find a bank that will give me a loan at a lower interest rate than 9%. Or put more down on a down payment. I really want to finalaize something in the next 9 months. My salary more than doubles at the start of 2017 so that's why all this is even doable.

DVC will usually break even in 7-10 years on a resale paid in cash, but 15-20 buying direct or having to finance. But it really will depend on where you would stay otherwise.

If your financial situation changes, you can usually apply more to your monthly payments with no negative issues, paying it down early. As I said, unless you obtain a non timeshare based loan, your rates will rarely get much better than that.

Personally, I wouldn't put down a larger down payment. Having a new baby does have alot of expenses that may have not been anticipated, and the extra money would come in very handy. I'm saying this as someone with a 2yo, and I'm still amazed at how much crap one needs to buy, even 2 years in, never mind all the new stuff you needed up front.
 

21stamps

Well-Known Member
I'd plan on putting around 10% down more than likely. Wouldn't change much though. I was thinking a monthly payment would be around 300-400. But 600 plus maintenance fees is more than I planned on.

At 0% interest on a 60 month loan of $30k you would be 500. With 10% down you would still be $450.

I would check with your bank to find out if a Home Equity Loan would be a better option for you. It's a strong possibility that you would get a much lower interest rate!

9% interest rate seems high. If I purchase a timeshare for 30k and put 3k down and closing costs, by no means should the monthly payment be that much. So it has to be the interest rate. I have a 5yr Liam on a truck at 30k and only put 1,500 down and the payment is $420 with a 4% interest rate.
They must have lowered the price of the truck, by several thousand dollars, or there was a large rebate. Check your contract, it's impossible that you financed 30k for 60 months at that payment.
 

LuvtheGoof

Grill Master
Premium Member
I have a 5yr Liam on a truck at 30k and only put 1,500 down and the payment is $420 with a 4% interest rate.

At 0% interest on a 60 month loan of $30k you would be 500. With 10% down you would still be $450.

They must have lowered the price of the truck, by several thousand dollars, or there was a large rebate. Check your contract, it's impossible that you financed 30k for 60 months at that payment.
I have to agree that $420 is impossible. The payment on $28,500 at 4% for 5 years is $524.87.

Edit to add: to get to a payment of only $420, the loan would have to have been only $22,800.
 

21stamps

Well-Known Member
I have to agree that $420 is impossible. The payment on $28,500 at 4% for 5 years is $524.87.

Edit to add: to get to a payment of only $420, the loan would have to have been only $22,800.
My favorite saying- "It's math. Not magic." ;)

Nothing against you OP, a lot of people get so focused on a payment that they don't actually realize the amount they financed for an item.
The average American looks at what they can afford monthly, not so much at the overall cost. It's why so many things are marketed at "for only $99 per month!!" Etc etc. This can get us in trouble..but I don't see it changing anytime soon.
 

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