There are many reasons why owners of DVC are refinancing mortgages right now and a lower interest rate is the best reason to do it.  According to Bankrate.com, interest rates have declined for the fourth straight week and been declining since late 2018. When interest rates drop you should consider refinancing to shorten the term of your DVC mortgage and pay significantly less in interest. Refinancing a DVC mortgage means paying off an existing loan and replacing it with a new one. 

Vacation Club Loans is offering a guaranteed 9.99% rate for any transferred loan either from Disney Vacation Development directly or one that was financed through another lender on the resale market.  Loans over $10,000 can be paid back over 84 months (7 years) while loans under $10,000 can be paid back over 60 months.

According to Disney’s official site here are their offered rates for direct purchases:

Credit Status, Down Payment     Interest Rate

Premium, 20% down                 9.99%

Preferred, 10% down                 14.5%

Preferred, 20% down                 12.0%

Standard, 10% down                 17.5%

In order to qualify for the 9.99% with Vacation Club Loans, owners must possess a 600 FICO score or better.  That’s the only requirement for the guaranteed rate.  The deed and ownership do not change, however, new taxes and fees must be paid to Orange Country, FL based on the new mortgage loan so a fee of $300.00 will be due.  Vacation Club Loans is not charging a loan origination fee to refinance for a limited time.  The $300 to Orange County will be paid at closing which takes approximately 15 days to transfer your loan.

Lori Fuhr recently refinanced and here’s her advice: “I refinanced due to my direct rate being 12% and on 2 contracts the interest over 10 years was very high.  I emailed VCL requesting info and I was signing the contacts the next day.  I even requested a breakdown of the monetary difference between a refi and just paying more towards the principal on my direct loan and got it back within an hour.  It was a no brainer.  Wonderful experience from start to finish. “

Here’s How It Works to refinance an existing DVC loan with higher interest:

Step 1:  Get your payoff amount from Disney direct or other resale lenders plus 15 days of added interest.  For example, if today is October 20^th then call and get your payoff as of November 4^th.  This gives you time to complete and return your new loan documents and gives Disney time to process the check from Vacation Club Loans.

Step 2: Fill out the secured credit application

Where the application asks “Enter broker or sales agent’s name”:  type in refinance to get the 9.99% rate.

Step 3: Sign and have notarized all new loan documents then return the originals to Vacation Club Loans along with a check for $300 to cover government taxes and costs.

Step 4:  Loan is paid off and new loan payments will automatically begin the following month to your new lender.

No prepayment penalties if you choose to pay off even earlier.

Heather Kirchner also just refinanced and says: “I refinanced because I was in the process of purchasing DVC though the resale market and saw the advertisement on your website.  I noticed the rate you offer for refinances after I applied for the new loan. The fact that the rate was 4.5% lower than Disney really made me take notice. I appreciated your quick response and you came highly recommended by my resale agent. I had already paid off a year of my loan with Disney before the first payment was due, but I noticed I could save over 2 years of additional payments with your product and my payment didn’t change. Being in banking myself, I appreciated how informative and responsive you are. I don’t think I will go with another company for any of my timeshare purchases but yours. With the quick turnaround time and perfect handling of my payoff, I experienced no issues. I can’t wait to close this new purchase with you and appreciate everything you and your staff do. Thanks.”

For more information on refinancing contact Debbie@vacationclubloans.com for a complete comparison on interest and potential savings.