Refinancing options.

[sarahsliefie]

We just purchased a timeshare and financed it with the company. That means pretty high interest rate right off the bat. We're looking at refinancing it but don't have enough equity in the house to put it into there. Where should I look first when finding a decent interest rate?

 

[dioxide45]

When you say you "just purchased", how long ago was this? Are you still in the rescission period? Based on past posts, perhaps it was a while ago?

Certainly you could use equity from your home to pay down as much as you can. Other options would be a signature loan through a bank. The rates may still be high, but probably not as high as timeshare developer interest rates. Transferring to introductory 0% interest credit cards is another option.

 

[TheTimeTraveler]

We just purchased a timeshare and financed it with the company. That means pretty high interest rate right off the bat. We're looking at refinancing it but don't have enough equity in the house to put it into there. Where should I look first when finding a decent interest rate?

Many timeshares can be obtained for as little as $1, and some for a bit more. With that said, unless you're buying from a developer, few, if any financial institutions have any interest in financing timeshares.

The best way to reduce the interest rate on your loan is to borrow against your house and pay it off, but you already realize you don't have the equity to do that.

My best suggestion would be to rescind if you are still within the period in which you can legally do so, and search for a resale on a place like TUG ("giveaway section") or eBay.

What exactly did you purchase?



.

 

[Janann]

If you decide to refinance, Lightstream can probably do it.

Timeshare Loan and Refinancing | LightStream by Truist

Finance a timeshare with a LightStream loan. Low fixed rates for those with good to excellent credit. Loan amounts from $5,000 to $100,000. Learn more.

www.lightstream.com

 

[bogey21]

If you decide to refinance, Lightstream can probably do it.

Jump on it if you can. Sounds too good to be true but you won't know unless you try...

George

 

[TheHolleys87]

We just purchased a timeshare and financed it with the company. That means pretty high interest rate right off the bat. We're looking at refinancing it but don't have enough equity in the house to put it into there. Where should I look first when finding a decent interest rate?

There’s also a company called Monera that finances a lot of DVC purchases.

 

[kanerf]

It is fairly easy to get financing for DVC purchases and there are several companies that do it, including Monera as mentioned above. These are for resale purchases, but I not not sure that would re-finance an existing loan. That said, most loan companies are not interested in timeshare loans because they hold little value. If the loan company gets stuck with it, they usually cannot sell it (just like most people cannot). Your only options are a personal loan that may or may not be backed up by your home equity.

 

[dioxide45]

It is fairly easy to get financing for DVC purchases and there are several companies that do it, including Monera as mentioned above. These are for resale purchases, but I not not sure that would re-finance an existing loan. That said, most loan companies are not interested in timeshare loans because they hold little value. If the loan company gets stuck with it, they usually cannot sell it (just like most people cannot). Your only options are a personal loan that may or may not be backed up by your home equity.

I heard on a recent DIS DVC Fan YouTube video that Monera now offers refinancing and even cash out refinancing for DVC. That said, it is unlikely they would offer any real refinancing options for what could be a Diamond contract that is likely to have $0 resale value. They can offer such financing on DVC because the resale value is there and it is truly a secured loan. For something with $0, they can secure it with a mortgage, but if the secured property is worth $0, then it really isn't secured.