Timeshares are a great way to enjoy vacations at your favorite destinations without the high cost of staying at hotels. However, these vacation homes don’t usually come cheap and many owners find themselves in need of financing.
Fortunately, there are a few ways to finance your timeshare, which can make your vacation home ownership even more affordable. By knowing the best timeshare loan options, you can save thousands of dollars on your vacation home and spend more on the fun stuff you want to do during your getaways.
Developer Financing
When you’re ready to purchase a timeshare, your best option may be to go directly to the timeshare developer. They’ll provide all the paperwork and help you close the deal quickly. The downside of this approach is that developer financing tends to come with high interest rates, especially for those with bad credit.
It’s a good idea to shop around before you buy, especially if you’re planning to stay in the same resort year after year. Some developers will offer a limited-time, special promotion that can make buying a timeshare cheaper.
Another option is to shop around for timeshare resales. These secondhand deals are often much cheaper than the same property directly and are a great way to get more value for your vacation investment.
These deals can also be a good way to pay off your timeshare loan if you’re not satisfied with your current interest rate and monthly payment amount. Alternatively, you can refinance your timeshare loan to a personal or home equity loan at a lower interest rate.
A Personal Loan
If you have strong credit, a personal loan from a lender can be a great way to pay off your timeshare debt. Personal loans generally come with a lower interest rate than other forms of mortgage lending, and they’re easy to qualify for.
You can also compare lenders online, as most of these companies do not operate physical branches and can therefore offer competitive rates. Some even have low, fixed-rate plans for up to five years or more.
A Home Equity Loan
If you already own a home, you can use the equity in it to pay off your timeshare loan. This option can be particularly attractive if you’ve built up a significant amount of equity in your home, and it also offers a more attractive rate than other forms of mortgage financing.
It’s a good Idea to Shop Around Before You Buy
By knowing the best timeshare loan options, it’s possible to save thousands of dollars on your vacation home and enjoy more time away from work. By shopping around, you can make sure you’re getting the best deal on your timeshare and your vacation experiences.
Ultimately, timeshares are great for people who travel frequently and love a particular destination. But if you’re not sure you’re going to stick with your timeshare or you’re not planning on using it much, then it’s probably a good idea to consider selling or renting it out.