Comparing DVC loans and term options can be tricky in today’s market.  Finding the best deal could take time so we have done the work for you in an easy to read summary.  This summary quickly shows our maximum 10-year loans compared to 10-year loans offered by other DVC lenders that were also A+ rated by the Better Business Bureau.  

To compare, we used data in over 150 current resale contracts pending with us in the month of October 2020 through out all the DVC properties in all 4 states where they are in as we finance all of them.  

Then we took into consideration current interest rates offered through various lenders.  The average credit score is 700 from our pool of applicants which qualifies for an interest rate of 12.9% at Vacation Club Loans and the variable interest rates with other lenders based on price per point, down payment, and length of loans.  To compare “apples to apples” and in complete fairness we had to assume all down payments were 10% which is the standard amount for us as well as all terms of 10 years.  Of course, the shorter the term the less you will pay in interest so keep that in mind.

RESULTS OF TESTING

LOAN ORIGINATION FEES
Vacation Club Loans $0.00     Lender #2  $199.00    Lender #3  $139.00            

No Fee =  Better deal                                                                     

INTEREST RATES OVER 7 YEARS

Vacation Club Loans – 12.9%  Lender #2 – 14.9%      Lender #4 – Average 14.75

2% lower interest rates           2% higher on average     See their Chart below

Average Savings with Vacation Club Loans on more than 90% of contracts reviewed $1,503.00

The BELOW rates are by Lightstream as of Nov 4, 2020
Loan amount					73 – 84  MONTHS       Lender 4 is a division of Suntrust Bank
$5,000 — $9,999					73 to 84 months, rates are not available for this amount. $5,000 — $9,999
$10,000 — $24,999					73 to 84 months, rates are not available for this amount. $10,000 — $24,999
$25,000 — $49,999					73 to 84 months at 10.24% – 19.24%           AVERAGE RATE 14.75%
$50,000 — $100,000					73 to 84 months at 10.99% – 19.99%          AVERAGE RATE 15.49%

Disney Vacation Club financing for bad credit borrowers with a FICO of 599 or Less – if you have bad credit and still want to become a DVC member, proceed with caution — Disney Vacation Club financing for bad credit borrowers is limited. Bad credit personal loans or secured loans often have very high-interest rates and can be risky. If you fall behind on your payments, you could lose your property.  Even filing for bankruptcy does not protect your timeshare interest as these are considered non-essential assets and will be removed very quickly by the Judge in your jurisdiction giving the lender the ability to foreclose.

Footnote:  we had to omit Home Equity Loans, because we are unable to retrieve what buyers have in their home’s equity vs. what their bank may lend vs. what their bank’s interest rate vs. closing costs.  The calculation had too many unknowns to assume.  We will mention that Home Equity Loans do tend to have the best interest rates if you are comfortable with:  1) using your residence as collateral, 2) paying for a home appraisal if needed, and 3) paying for additional closing costs that go with this type of loan as well as the closing costs to the resale title company for your DVC property.  (Vacation Club Loans waives all loan origination fees)

Featured Image courtesy of “savings ahead” by 401(K) 2013 is licensed under CC BY-SA 2.0