Author Topic: Refinancing Timeshare Loan  (Read 2338 times)

Eric9064

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Refinancing Timeshare Loan
« on: September 26, 2016, 11:15:28 AM »
I just found out that my parents have a loan for a timeshare at a very high interest rate. They asked me to look into if it would be possible for them to refinance, but I am having some trouble finding reliable information on the web. Has anyone gone through this process and, if so, can you recommend a lender to use?

Thanks in advance.

Axecleaver

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Re: Refinancing Timeshare Loan
« Reply #1 on: September 26, 2016, 12:24:33 PM »
You're looking for an unsecured personal loan. Timeshares don't convey any real property, so there's no collateral for the bank to seize if your parents default. As a result, the rates are going to be much higher than they would be for a collateralized loan, like a traditional mortgage.

It may be easier for them to default on the timeshare now, rather than seeking a loan to pay it off.

boarder42

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Re: Refinancing Timeshare Loan
« Reply #2 on: September 26, 2016, 12:57:58 PM »
yep as axe said ... if they dont want to default you could use a loan with real collateral behind it like a HELOC or taking out a new loan on a car depending on how much it is.

Mother Fussbudget

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Re: Refinancing Timeshare Loan
« Reply #3 on: September 26, 2016, 02:34:36 PM »
There are a few timeshare companies (Hilton Grand Vacations) where the timeshare represents actual real estate, and retain some of their value.  Typical timeshare loans are upwards of 10% APR. 
Boarder42 has the right idea -  get a HELOC on their house at >5% and pay off the 10% loan.   

The Timeshare Users Group online discussion forums would probably have more specific answers regarding your parents timeshare company (http://www.tugbbs.com/).  Resale value, places to buy/sell/trade timeshares, etc.

Eric9064

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Re: Refinancing Timeshare Loan
« Reply #4 on: September 27, 2016, 09:03:25 AM »
Thanks for the responses and I appreciate the help. My parents do you have a HELOC that they could use to pay-off the timeshare but are hesitant to use it for that purpose.  I'll look into other options but using the HELOC may be the best course of action.

frugaliknowit

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Re: Refinancing Timeshare Loan
« Reply #5 on: September 27, 2016, 01:03:25 PM »
Are they using (and presumably enjoying) the timeshare?  If not, maybe they should work on getting rid of it...?

marion10

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Re: Refinancing Timeshare Loan
« Reply #6 on: September 27, 2016, 02:27:28 PM »
I second tug as a great resource- unless they are activley usuing the tomesher- it might not even be worth paying it off- maybe the timesshare will accept it back.