Pay off Marriott Vacation Club?

[blackkat]

Hi all,

Signed up back in 2021 directly at a Marriott and discovered this forum and how we could have saved thousands by not making the mistake we did. At this point the plan is to pay it off ASAP, the rate is 11.99%.

Any known issues doing early payoff with MVC? Trying to avoid the added interest cost if the loan is taken to maturity in 2031. Already paid more than I should have for it, ah well... We will use it and once paid off the maintenance fees are all we should have right?

Thanks all!

[Moderator Note: Thread moved to Marriott forum.] <-- SueDonJ

 

[Dean]

Hi all,

Signed up back in 2021 directly at a Marriott and discovered this forum and how we could have saved thousands by not making the mistake we did. At this point the plan is to pay it off ASAP, the rate is 11.99%.

Any known issues doing early payoff with MVC? Trying to avoid the added interest cost if the loan is taken to maturity in 2031. Already paid more than I should have for it, ah well... We will use it and once paid off the maintenance fees are all we should have right?

Thanks all!

[Moderator Note: Thread moved to Marriott forum.] <-- SueDonJ

I don't think so. Often they have incentives that require financing but the longest term I've seen is 18 months requirement to pay so you should be good there. The only other issue is to make certain they apply and extra payments to principle rather than prepay payments.

 

[michael49]

There should be no problem with paying off the loan early. We did just that eight years ago. I think we paid off the loan 4 years into a 10 year loan period.

 

[jmhpsu93]

We paid ours off after 18 months. IIRC you call and get a payoff quote and we physically mailed a check, but I think there are online options as well.

 

[igopogo]

Can anyone tell me the specific requirements to receive plus points with Marriott financing? Of most interest to me (perhaps a pun in there) is whether I can pay most of the loan down ahead of the 18 month mark, leaving enough that I have 18 months of regular payments but not having a huge balance on which to pay interest.

I don’t have a loan with them at this point, so no docs to look at.

 

[DRH90277]

Can anyone tell me the specific requirements to receive plus points with Marriott financing? Of most interest to me (perhaps a pun in there) is whether I can pay most of the loan down ahead of the 18 month mark, leaving enough that I have 18 months of regular payments but not having a huge balance on which to pay interest.

I don’t have a loan with them at this point, so no docs to look at.

Suggestion - Consider you are buying the Plus Points with the exorbitant interest you are paying. They are smarter than most of us - you get the Plus Points and are buying them with the high interest - What a deal.

 

[gln60]

There should be no problem with paying off the loan early. We did just that eight years ago. I think we paid off the loan 4 years into a 10 year loan period.

When we purchased (Horizons)Marriot Harbour Lake(Pre Construction at $9,999) in 2000, we took out a loan and paid it off over 3 years.

 

[dioxide45]

Suggestion - Consider you are buying the Plus Points with the exorbitant interest you are paying. They are smarter than most of us - you get the Plus Points and are buying them with the high interest - What a deal.

It's a complete ripoff. The money you spend in interest could instead get you three times the points on the rental market.

 

[igopogo]

Suggestion - Consider you are buying the Plus Points with the exorbitant interest you are paying. They are smarter than most of us - you get the Plus Points and are buying them with the high interest - What a deal.

I totally get this, and that’s why I ask the question. If I’m allowed to pay of 90% immediately, Avoid most of the interest dollars and take the points anyway, then it becomes a good deal. If I am required to only make minimum payments then it’s a bad deal.

I’m wondering if anyone knows the answer to that level of detail.

 

[pedro47]

Suggestion make sure your check states this is a principal only payment.
100% of your payment will be credit toward the principal.

 

[dioxide45]

I totally get this, and that’s why I ask the question. If I’m allowed to pay of 90% immediately, Avoid most of the interest dollars and take the points anyway, then it becomes a good deal. If I am required to only make minimum payments then it’s a bad deal.

I’m wondering if anyone knows the answer to that level of detail.

I recall there is a minimum you have to finance (perhaps 80%). Outside of that, I don't know what requirements there are for the remainder of the payments. I am sure there is some kind of catch to make sure MVC makes money on the deal and you get the short end of the stick.

 

[kozykritter]

Can anyone tell me the specific requirements to receive plus points with Marriott financing? Of most interest to me (perhaps a pun in there) is whether I can pay most of the loan down ahead of the 18 month mark, leaving enough that I have 18 months of regular payments but not having a huge balance on which to pay interest.

I don’t have a loan with them at this point, so no docs to look at.

To receive the incentive points after 18 months of payments, your down payment can be no greater than 20% (I believe you can pay the closing cost as well) and you can make no extra principal payments on the loan during the 18 months. If you aren't trying to get the incentive points, you can pay the loan off/make extra payments whenever you want without penalty...not sure on what the minimum % financed is currently.

 

[DRH90277]

My understanding is that to get the Plus Points you must make 18 monthly payments and it was suggested that you then wait a month or so for the points to be deposited. Then you can pay off the debt or pay against the debt.

MVC packages these loans and sells them off as an additional income stream due to the high interest rates and quality of the borrowers.

My suggestion is that you call a Financial Services Representative at MVC on 800 487 2033 or 407 393 5100 to ensure you fully understand the financing deal and to confirm what you're being told by others.

 

[dioxide45]

MVC packages these loans and sells them off as an additional income stream due to the high interest rates and quality of the borrowers.

The best I can tell from the press releases of these loan securitizations is that they aren't selling these off in the same way a residential mortgage lender does. MVW is just issuing notes using the loans as collateral. The buyers of the notes lend MVW the money and MVW is just issuing new debt. MVW makes a profit when the coupon rate is lower than the interest rates on the timeshare loans on their books. When they do these securitizations the timeshare loans aren't owned by a new lender who can now come after you and that lender doesn't directly take a portion of your loan payment in the way a mortgage loan does. The timeshare loans are still owned and serviced by MVW. The proceeds of the securitizations are used to pay off other debts and corporate operations. If a timeshare owner defaults on their loan, MVW is still on the hook for the full debt that they took on.

 

[davidvel]

I totally get this, and that’s why I ask the question. If I’m allowed to pay of 90% immediately, Avoid most of the interest dollars and take the points anyway, then it becomes a good deal. If I am required to only make minimum payments then it’s a bad deal.

I’m wondering if anyone knows the answer to that level of detail.

Why do you want to buy from developer, or at all?

 

[igopogo]

Why do you want to buy from developer, or at all?

I am enrolling a fractional resale purchase.

 

[davidvel]

I am enrolling a fractional resale purchase.

Got it.