In considering financing for your membership purchase, three options are available:
We also accept MasterCard and VISA. As the old saying goes, “cash is king.” If you are a cash buyer you have the pick of the inventory. Your ability to move quickly can often result in a better price. TLS has a RETA account in Washington State (Real Estate Trust Account) and we highly recommend that both buyers and sellers take note of how important it is to all parties involved to work with a licensed broker and to trust account all funds.
Obtaining New Financing
Financing of timeshare memberships is a very specialized type of lending. Typically Buyers securing their own financing will use a credit card or home equity line of credit. If you wish to obtain 3rd party financing specific to timeshare, there are companies that do it. Contact TLS for current companies that are offering up financing for timeshare purchases. Criteria are typically strict and the rates offered are not as optimal as when the Buyer secures financing through their own resources.
In addition, you may have an existing line of credit you can draw upon such as a home equity line. If so, you may be able to secure financing at more favorable rates. Check with your lender.
Assume Existing Financing
Taking over payments is a possible method of financing through the following parameters:
Only a handful of our contracts have existing loan balances with Wyndham. These contracts are based upon the seller's current loan balance and terms. Assuming these loans is at the term and interest rate that the seller currently has remaining. These contracts are not typically listed as part of our normal displayed inventory. Please contact TLS at 1-800-206-0611, or email@example.com to see what inventory we currently have available. Credit worthiness is determined by the lender (Wyndham Vacation Ownership) and subject to their acceptance criteria.
- Lower Annual Percentage Rate
Most consumer loans are amortized. This means the interest charged for the loan is paid monthly along with a portion of the original loan amount (principal). Assuming a loan that has been in existence for some time results in lower interest costs. That's because the interest charges are much higher on the first payment and become progressively smaller as each subsequent payment is made. Thus, a loan which has already been paid down substantially will dramatically reduce your overall borrowing costs, BUT it will rarely result in a lower acquisition cost than a cash purchase.
- Lower Cash Requirement
In most cases borrowers are required to make a down payment (typically 10% or more) of the purchase price. It is often possible to assume a loan using little or no money out of pocket. In some cases it is even possible to get "cash back at closing."
The Drawback...Less Choice: The drawback to assuming a loan is there are fewer memberships available to choose from. It may be that you can negotiate a better price on an ownership by paying cash or getting your own financing. Nonetheless, the assumption of existing financing remains a very popular option.
Please contact us immediately if you have any questions regarding the financing options available to you. A lifetime of joy and memories is just one phone call or email away!