A timeshare loan is a type of mortgage that you use to purchase a timeshare property. These loans are generally offered by the lender your timeshare salesperson recommends or a third-party lender. Many of these lenders aren’t always the best options in terms of interest rates and repayment terms, so it’s important to shop around for a loan that suits your needs.
If you are looking to refinance your existing timeshare loan, there are several factors you should consider before committing to this process. First, consider why you want to refinance your timeshare loan and whether it’s the best choice for you.
Refinancing your timeshare can help you get a lower monthly payment on the original loan and reduce the amount of money you owe on maintenance fees. However, it can also lengthen your loan term and increase the amount of money you’ll have to pay in interest over the life of the loan.
It can also make it difficult to sell or relinquish your timeshare. In fact, many people simply walk away from their timeshares because they can’t afford the high annual maintenance fees.
Another reason you should consider refinancing your timeshare loan is that it may allow you to reduce or eliminate your payments altogether. For instance, you might be able to use a 0% APR credit card to pay off your current loan balance faster. This could mean that you’ll be able to save a lot of money in the long run.
Before deciding on a timeshare loan, it’s also important to understand the risks associated with these types of loans. One of the key risks is pre-completion loan defaults, which occur when a timeshare owner buys a new unit that’s not ready for occupancy.
In these cases, a timeshare owner can end up with a non-paying obligor that can cause a lot of damage to the securitized pool of timeshare loans. Luckily, there are ways to mitigate these risks and make the process of obtaining a timeshare loan easier than ever.
1. Refinance your timeshare with a personal loan or home equity line of credit
When you decide to refinance your existing timeshare loan, the first step is to shop around for a new lender that offers low rates on timeshare loans. Some of these lenders offer rate quotes without a full credit check, which preserves your credit score and allows you to apply for the loan that’s right for you.
2. Take advantage of a timeshare loan with no pre-payment penalties
If you’re interested in taking advantage of a timeshare loan with no interest or pre-payment penalties, look into financing through Vacation Club Loans (VCL). These lenders specialize in timeshare and offer affordable rates that are guaranteed to stay low for the life of your loan.
3. Buying resale
If you don’t plan on using your timeshare anymore, it may be wise to buy resale through a reputable timeshare sale website. You can often get a better deal on a timeshare that’s been purchased secondhand, as opposed to one that was sold by the developer.