In considering financing for your membership purchase, three options are available
(we also accept MasterCard and VISA)As the old saw 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.
Obtaining new financing
Financing of timeshare memberships is a very specialized type of lending. We recommend Tammac Financial www.tammacfinancial.com. Their rates are competitive and their service is excellent. Tammac typically requires a copy of a signed purchase agreement as well as completion of a simple loan application. We will be glad to assist you with negotiating a purchase conditioned upon approval of financing.
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.
Assuming existing financing
Taking over payments is a popular method of financing a purchase for the following reasons:
- Simplicity. Trendwest uses a one-page credit application for all membership transfers whether they are purchased with cash, a new loan, or an existing loan is “assumed.” Upon approval by Trendwest it is possible for you to assume the contractual rights as well as the loan obligations of the seller.
- 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.
- 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 Selection: 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 a membership 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 away!