Use Home Equity Loan To Pay Off Timeshare
REM #A675
By Ilyce R. Glink
Summary: A timeshare owner is enjoying their property, but not their 17% interest rate. Ilyce suggest either taking money out of their home equity to pay off the loan or looking into getting a personal loan.
Q: My partner and I purchased a timeshare in June, 2005, and we love having
it.
However, at the time of purchase, the interest rate was (and still is) 17.9 percent. Can I refinance a timeshare? If so, can you give me suggestions as to which lenders refinance timeshares?
If not, what would be your suggestion to drastically reduce this rate? I have looked on-line, but perhaps I have missed something.
A: I'm glad you and your partner like timeshares and I'm pleased that this
one is working out for you.
Too bad your timeshare developer couldn't do better than offer his customers
a poor credit card rate when it comes to financing.
If you own your own house, and you have any equity built up, you might want
to take out the equity and use it to pay off the timeshare loan. You’d
do this with a home equity loan or home equity line of credit.
A home equity line of credit or home equity loan would cost you anywhere from
6.5 percent to 9 percent, but that's a whole lot less than what you're paying
now.
If you don't own your own home, then you need to look into taking out a personal
loan. Unfortunately, I think you wouldn't do much better interest-rate wise
on a personal loan.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
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