When you decide to refinance a timeshare loan, you should understand that this process isn’t easy. The refinancing carries out a high risk both for commercial and private banks. They rather consider it a bad investment because the timeshare loans include annual maintenance, assessment fees, and mortgage payment. If you can’t provide a powerful proof of your creditworthiness, the lender will more likely to refuse you.
What Are Timeshare Loan Refinancing Options?
Still, if you have a good credit, you have a couple of reasonable timeshare loan refinancing options.
- There are companies that deal with timeshare loan refinancing. There are situations when borrowers don’t want to deal with their lenders directly. In such cases, you can turn to the timeshare loan re-financiers. Still, don’t forget that the interest rates are usually higher.
- The resale value of the timeshare is lower and the loan is less reliable. If you can’t find a lending institution that will be ready to refinance a loan, you can offer your home and get a home equity loan. In the result, you get a larger sum to pay off the timeshare. The rest of the payments (home equity) are much lower.
- If you still can’t figure out how to get out of a timeshare loan, you can try credit card refinance. This option is good for its lower monthly and interest payments (often 5%-10% lower).
- You can also borrow again your personal unsecured loan or 401(k) retirement account to refinance timeshare loan. Still, don’t make the fast decision. You should consult with an expert and figure out whether the profit from the refinancing is worth the risk of the long-term financing. For this purpose, you can use timeshare loan calculator and calculate the profit yourself.
These are the most popular ways to refinance your timeshare loan. The process is complicated and not beneficial but you still can find a reasonable variant.