Although there are several owners who are trying to get out of their timeshare contracts these days, many holidaymakers are into timeshare ownership as a way to vacation. Meanwhile, some people opt for loans to pay for such purchase. And once a timeshare is financed, they can opt for refinancing. Refinancing refers to the replacement of an existing debt obligation by another debt obligation of different stipulations. Be warned though that there are also risks involved with this. This article presents some insights into the common timeshare refinancing options.
First, check your personal credit report as a bad credit usually results to a higher interest rate to refinance a timeshare. You may also order a copy of your credit report before contacting a lender. Your aim here is to get as lowest rate as possible.
You may also contact a timeshare refinancing company. Today, several companies specialize in timeshare refinances wherein you can obtain a better interest rate or extend your loan term. Look at 3 to 4 different companies and request a no-obligation quote.
Another option is to refinance the loan with a bank or credit union. Banks and credit unions typically offer the lowest interest rate on timeshares. You may purchase the timeshare with in-house financing first and then refinance it at a later date.
Moreover, you can apply for a home equity loan or cash-out mortgage refinancing for your timeshare. You'll then receive a lump sum of cash which can pay off the timeshare loan since home equity loans and mortgage refinances have lower rates, you'll then save money.
On the other hand, the best option when purchasing a vacation property such as timeshares is still to pay through cash. But for those who are interested in buying a timeshare can also use the above-mentioned options to obtain funds for the purchase. As refinancing a timeshare is considered a risky option, any potential owner must look at the details of these options in any aspect before jumping to any deal.