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Refinance current contract to lower rate

Discussion in 'Buying, Selling, Renting' started by domingo, Oct 13, 2008.

  1. domingo

    domingo TUG Member

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    Has anyone refinanced a timeshare loan. My current loan is at 9.99% and I'm going to talk to Bank of America to see if I can get that down to 7%. If anyone knows of a bank that is willing to refinance a timeshare loan please let me know. I have good credit, but I'm trying to reduce my monthly payment so I can put more in my kids college 529 plan. Can you say sucker because that is me, they should have a class on how to purchase timeshare without getting ripped off.
     
  2. geekette

    geekette Guest

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    It is generally very difficult to get anyone to take on a timeshare loan, and I would think with the current financial market hoo hah, it would be next to impossible.

    If you get 0% interest offers for balance transfers, I'd go that route, assuming you cannot get a HELOC.

    The class for buying without getting ripped off is on these boards. But, at this point, learn how to make the most of what you own.
     
  3. domingo

    domingo TUG Member

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    that is good advice I will apply for a credit card with a 0% balance offer and transfer as much as I can to that card. Discover just sent me a 0% balance transfer offer for life if I just make 50$ in purchases every month after the first year of balance transfer. With the price of gas 50$ in purchases is nothing that is one fillup a month.
     
  4. Dave M

    Dave M TUG Lifetime Member

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    Banks won't finance timeshares. Too much paperwork for too little profit.

    Other than a credit card....

    The only sources for timeshare loans seem to be developers (e.g., the loan you already have), Tammac Financial and First Again. The interest rates for First Again are around 8%, but the interest is not deductible for income tax purposes. The Tammac loans carry a higher rate than what you are currently paying and the interest isn't deductible.

    Your best bet for saving money, if you own your home and have equity, is to refinance or obtain a home equity loan. The interest rate is likely to be the lowest available and the interest will almost certainly be deductible.
     
    Last edited by a moderator: Oct 13, 2008
  5. Hawaii123

    Hawaii123 Guest

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    2 Ts Refinance Companies

    TRY:

    tammac.com &
    firstagain.com
     
  6. Dave M

    Dave M TUG Lifetime Member

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    Uhhh....

    Those are the recommended two links in my post of this morning.
     
  7. MOXJO7282

    MOXJO7282 Tug Review Crew: Rookie TUG Member

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    Do not do this. The financing for the purchase amount is very high and when you pay your bill it goes to the lower of the % in your account so the purchase amount never goes down and your financing is much higher over all. Find a card that has a 3% balance transfer fee, with hopefully a cap of $100, but caps are getting rare.

    Regards.
    Joe
     
  8. gorevs9

    gorevs9 TUG Member

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    If you have good credit, the ability to pay, and own a home, have you considered a home equity Line of Credit (not a home equity loan). Not only can you pay off your high interest loan (though at 9.99% it's not terrible), you may be able to deduct the interest payments.
     
  9. domingo

    domingo TUG Member

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    Thanks Joe I will avoid the credit card solution, but I am going to check into the home equity line of credit. Thanks everyone for the help, I need to take a class in financing.
     
  10. Jya-Ning

    Jya-Ning TUG Member

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    Not line of credit. It is variable rate, and I believe the rate will become highly more likely.

    If you talk to Bank of American about refinance your current mortgage, you maybe able to get the equity out that just cover your TS loan, and pay it that way. It will be cheapest when trying to get access you equity.

    But that means for next 30 years, if you have problem to make payment, you will have problem keeping your house.

    Jya-Ning
     
  11. gorevs9

    gorevs9 TUG Member

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    Without knowing the balance of the loan and the term left to pay, it's difficult to suggest the best solution.

    While interest rates for LOCs are variable, many LOCs have no closing costs and IMHO, are a better vehicle for a borrowing a lower amount of cash for a short term. Closing costs to refinance an existing mortgage could result in total costs which exceed the variable rate LOC.

    I'll probably be chastised for this, but I've “played” the 0% credit card game a few times while paying off my daughter's college bills. I keep the $$ in interest bearing accounts while I pay the minimum each month. At the end of the promotional period I can either pay off the balance or roll it over to another 0% card (I'm guessing my credit report is about 5 inches thick about now :))

    If you play it right, you can even get a bunch of Frequent Flyer miles as well.
     
    Last edited: Oct 14, 2008
  12. sernow

    sernow TUG Member

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    "I'll probably be chastised for this, but I've “played” the 0% credit card game a few times while paying off my daughter's college bills. I keep the $$ in interest bearing accounts while I pay the minimum each month. At the end of the promotional period I can either pay off the balance or roll it over to another 0% card"

    I've known people who have played this "game" poorly with disastrous financial consequences.
     
  13. gorevs9

    gorevs9 TUG Member

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    THose are probably the same people who used a sub-prime mortgage to buy a house they could not afford.
     
  14. MaryH

    MaryH TUG Member

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    If you use a 0% or low 1-2% financing CC for balance transfer, put the card away and do not use it again until the balance transfer has been paid off. Also you need to make the regular payments religiously since a lot of the cards have provisions that if you miss a payment or deadline, the interest go up right away.

    I get those offers all the time but have not use it at all. My BIL used it when they were purchasing a car using a credit card with 1.99% balance transfer or cash advance not reading the small print and did not realize that it carried a 1% fee for setting it up as well as other purchases would carrying a close to 20% interest rate. He continued to use the credit card for close to 2 months until my sister read the credit card statement in detail just before paying it and it was a bit of a mess to clean up. If you needed the money for only 1-2 months, the set up fee makes it a far higher APR and continuing to use the credit card for purchases start incurring interest right away without any interest free days so approxmiately 1.5-2.5% when you pay on the due date.
     
  15. Talent312

    Talent312 Tug Review Crew: Rookie TUG Member

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    When I remarried about five years ago, I needed to help my [new] wife reduce a sizeable debt that she had incurred prior to our marriage (for legitimate reasons), so I strarted playing the 0%-teaser rate game about five years ago.

    Some cards had no transfer fees (HSBC?) and some did, but those that did, had a cap on the fee. We made sure that we did not use the card for any other purpose which would accrue interest. The debt was finally paid in full last month... just in time for us to lose a like amount in the stock market. <SIGH>
     

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