Financing A Timeshare

A factor that many people thinking about purchasing a timeshare fail to consider is the cost of the loan for the timeshare unit and how much this will increase the true cost of the timeshare. Rarely do people have the money to purchase a timeshare outright, and therefore they must finance the purchase.



It is essential to take the loan numbers into consideration when purchasing a timeshare rental unit. When these numbers are added to the timeshare's cost, it usually shows that the timeshare is not nearly as attractive in the amount it will save you as the timeshare salesperson makes it out to be.

The problem with financing a timeshare is that unlike second homes or vacation property, the vast majority of timeshare units don't qualify for a standard housing loan. In addition, timeshares don't usually qualify for the tax benefits that a standard housing loan receives

Instead of paying a single digit rate on a timeshare loan, you must typically pay double digit rates sometimes reaching 20% or more (which the timeshare developer will gladly provide) on any amount you choose to finance. When the finance charges are added into the other costs of the timeshare unit, the inexpensive vacation unit becomes a lot less appealing as a way to save money. If you have to finance the purchase of a timeshare, it is rarely worth the price the timeshare will end up costing.