DVC financing

[NewmanFamily6]

We financed our DVC points at one rate. We now have DH's school loans paid off and could probably qualify for a better rate. Does DVC allow you to refinance? Either way it will be paid off before the time limit but if we can save we would like to

[Disdude]

I suppose all contracts could be different but I don't believe that there are any prepayment penalties on our loan. I wouldn't think Disney would refi the mortgage but I would bet some bank would.

[Donald A]

I finance through Disney and you bring up a good point. There are no pre-payment penalties so you can go through someone else to see what you can do. I do not believe Disney will re-finance. I would also be careful you don't re-finance in such a way that you lose any tax benefits as I believe the interest is tax deductable like with a mortgage.

[Ian]

I work in the mortgage industry, so I can comment on this with a reasonable amount of knowledge ...

The only scenario where this really works out is if you can borrow against your primary residence and use the proceeds to pay off your DVC contract. Otherwise, you're not likely to get a rate attractive enough to make refinancing worthwhile nor will you get any tax breaks from it.

The best scenario is to take a home equity line of credit from a bank or mortgage broker. You should get the best rate there and the most payment flexibility, plus you'll have a line to draw against in the future in case of emergency.

[Horizon93]

Ian, I was just saying the same thing to my wife today as we were walking around Epcot discussing joining.

[DVC2004]

No I don't believe you can refinance through Disney. You could take out a home equity loan if you own a home and pay it off (probably lower the rate) but I wouldn't advise that. I'd leave the equity for other things.

[Horizon93]

That's a great point.