• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

Continue with Marriot Loan or no?

Mila78

newbie
Joined
Oct 29, 2008
Messages
25
Reaction score
0
Points
1
Hi everyone. I am an owner at Marriot SurfWatch. I currently am 1 year into a 10yr loan at 13.49% financing with Marriott. I have the possibliity of switching to a 7% loan which I could pay off faster due to less interest. What I am nervous of is losing all the Marriott points that are involved when you finance with Marriott. Since the point system just changed though, I am thinking it might be as big of an idea as before the change.

What do you guys think? Do you think that its worth to lose all those points to have a better interest rate? I'm really torn here.

Thanks
Mila
 

lll1929

TUG Member
Joined
Jul 26, 2007
Messages
996
Reaction score
1
Points
228
Location
Kansas City, MO
If you have the ability to shift the loan to a lower rate, I would say do it!!

The points that are gained from financing are devalued with the new program.

You can use the difference in the payment amts to purchase marriott points. I believe you get 50,000 pts per year for financing. You can purchase those 50,000 point for $625 a year.
 
Last edited:

vacationtime1

TUG Review Crew: Veteran
TUG Member
Joined
Sep 7, 2006
Messages
5,233
Reaction score
2,837
Points
649
Location
San Francisco
Resorts Owned
WKORV-OF (Maui)
WKV x2 (Scottsdale)
You would be saving 6-1/2% interest per year for nine years. That is an enormous difference. Refinance the loan.
 

Mila78

newbie
Joined
Oct 29, 2008
Messages
25
Reaction score
0
Points
1
If you have the ability to shift the loan to a lower rate, I would say do it!!

The points that are gained from financing are devalued with the new program.

You can use the difference in the payment amts to purchase marriott points. I believe you get 50,000 pts per year for financing. You can purchase those 50,000 point for $625 a year.

Wow, I'll definitely save more than $625 a year. So its a no-brainer then.

Thanks for your responses!
 

Zac495

TUG Member
Joined
Jun 6, 2005
Messages
3,108
Reaction score
105
Points
448
Location
Philadelphia, PA
Out of curiosity - what about the income tax deduction? Does that off-set the interest at all? Do you get a deduction because you own a titled, deeded property or because you have a mortgage on it?
 

thinze3

Tug Review Crew
TUG Member
Joined
Jun 5, 2007
Messages
6,364
Reaction score
37
Points
483
Location
Houston, TX
Out of curiosity - what about the income tax deduction? Does that off-set the interest at all? Do you get a deduction because you own a titled, deeded property or because you have a mortgage on it?

Ellen makes a good point. On most Marriott loans the interest is deductable while on most other loans it is not. Maybe Dave can tell you about the difference.

Terry
 

rsnash

Tug Review Crew: Rookie
TUG Member
Joined
Aug 2, 2008
Messages
377
Reaction score
2
Points
16
Location
NJ
If the lower rate loan is somehow connected to your primary residence home equity (i.e a "Line of Credit" or "Home Equity Loan") then that would qualify for tax detectability. If it tied to a credit card or other non-collateral loan then it would not.

(I'm not an accountant or anything, just pretty sure on this one, but check with your accountant or other tax professional to confirm.)
 

gorevs9

TUG Member
Joined
Mar 18, 2008
Messages
760
Reaction score
0
Points
16
Location
Rhode Island
Hi everyone. I am an owner at Marriot SurfWatch. I currently am 1 year into a 10yr loan at 13.49% financing with Marriott. I have the possibliity of switching to a 7% loan which I could pay off faster due to less interest.

If the lower rate loan is somehow connected to your primary residence home equity (i.e a "Line of Credit" or "Home Equity Loan") then that would qualify for tax detectability. If it tied to a credit card or other non-collateral loan then it would not.
Yes, take the lower rate, but will there be extra closing costs (some LOCs waive application fees, closing costs, etc)?
Refinancing to a lower rate AND making the extra payment, would probably reduce the loan by a couple years. Paying less interest would reduce any "tax savings" anyway.

IMHO, 7% would be high for a home equity line of credit (mine is currently 4.5%). Without knowing the loan balance or his tax bracket, it 's difficult to predict any savings. Assuming Mila owes a large sum ($20K or higher), the savings in interest, even if not deductable, will far surpass the tax savings (unless they are in a really high tax bracket)
 
Last edited:

Ask_A_Rep

newbie
Joined
Nov 14, 2008
Messages
4
Reaction score
0
Points
1
You no longer will get points (50,000 per year) for keeping financing anyway. All the other points were not contingent on keeping financing since about a year ago.
 

Mila78

newbie
Joined
Oct 29, 2008
Messages
25
Reaction score
0
Points
1
Yes, take the lower rate, but will there be extra closing costs (some LOCs waive application fees, closing costs, etc)?
Refinancing to a lower rate AND making the extra payment, would probably reduce the loan by a couple years. Paying less interest would reduce any "tax savings" anyway.

IMHO, 7% would be high for a home equity line of credit (mine is currently 4.5%). Without knowing the loan balance or his tax bracket, it 's difficult to predict any savings. Assuming Mila owes a large sum ($20K or higher), the savings in interest, even if not deductable, will far surpass the tax savings (unless they are in a really high tax bracket)


It is actually a personal loan. I am not a homeowner. So there are no closing fees involved since according to Marriott, I would just be "paying it off".

The sum is $34,000 that I would be borrowing (dont ask, i didnt know about TUG when I purchased from Marriott!).

My current payment is around $525 a month over a 10 year period (of which I am 1 year completed).

If I do it at 7%, I can have the entire loan paid off in 5 more years by only increasing my monthly payment by $148 (which I can definitely swing).

At 13.49 over the 10 year period, my payments are around $525. so for $148 more a month and by switching to a personal loan, I am shaving off 4 years.
 

gorevs9

TUG Member
Joined
Mar 18, 2008
Messages
760
Reaction score
0
Points
16
Location
Rhode Island
One more suggestion...

If I do it at 7%, I can have the entire loan paid off in 5 more years by only increasing my monthly payment by $148 (which I can definitely swing).
If you have any other debt (credit cards, car loans, school loans, etc) that exceed 7% interest, apply the $148 extra/month towards those loan(s) first, then use THAT extra $$ to pay off the TS loan.

Don't fret too much about overpaying for a TS, you are not the first and you won't be the last. Learn the system and enjoy the experience.

I commend you :clap: for refinancng and paying your loan as opposed to others who would just moan about high payments and try to find out how they can avoid them.
 

Mila78

newbie
Joined
Oct 29, 2008
Messages
25
Reaction score
0
Points
1
If you have any other debt (credit cards, car loans, school loans, etc) that exceed 7% interest, apply the $148 extra/month towards those loan(s) first, then use THAT extra $$ to pay off the TS loan.

Don't fret too much about overpaying for a TS, you are not the first and you won't be the last. Learn the system and enjoy the experience.

I commend you :clap: for refinancng and paying your loan as opposed to others who would just moan about high payments and try to find out how they can avoid them.

Thanks excellent advice! I actually don't have any other debt that exceeds 7% interest but I didn't even consider that until you said it! This would be the best place then for the extra $148 considering all of my interest rates.
 
V

Vacation Dude

The sum is $34,000 that I would be borrowing (dont ask, i didnt know about TUG when I purchased from Marriott!).

My current payment is around $525 a month over a 10 year period (of which I am 1 year completed).

Are you really paying $6,300 per year (loan) + annual dues ($1,000) = $7,300 per year?

Wow, that is over $1,000 per night for the next 10 years.

After 10 years, you would have paid $73,000 or more if my math is correct.

Where did you buy, how many bedrooms, etc?
 

Mila78

newbie
Joined
Oct 29, 2008
Messages
25
Reaction score
0
Points
1
Are you really paying $6,300 per year (loan) + annual dues ($1,000) = $7,300 per year?

Wow, that is over $1,000 per night for the next 10 years.

After 10 years, you would have paid $73,000 or more if my math is correct.

Where did you buy, how many bedrooms, etc?

SurfWatch, 2BR, Ocean View (hangs head in shame)
:bawl: :bawl: :bawl:

Edited to add: My plan was always to refinance if thats any consolation

Edited to add again: WOW, ID SAVE AROUND $20,000 IF I DO A LOAN AT 4.5% WHICH I THINK I CAN GET...
 
Last edited:
V

Vacation Dude

SurfWatch, 2BR, Ocean View (hangs head in shame)
:bawl: :bawl: :bawl:

Edited to add: My plan was always to refinance if thats any consolation

Edited to add again: WOW, ID SAVE $21,230 IF I TAKE OUT THIS LOAN!

I think anything you can do to lower the cost is a good thing.
 
Top