Friday, December 09, 2005
Use Line Of Credit, Home Equity Loan To Pay Off Costly Timeshare
Question: 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 we refinance a timeshare? If not, what would be your suggestion to drastically reduce this rate?
Answer: 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 lot less than what you're paying now.
If you don't own your own home, you need to look into taking out a personal loan. Unfortunately, I think you wouldn't do much better interest-rate-wise on such a loan.
Answer: 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 lot less than what you're paying now.
If you don't own your own home, you need to look into taking out a personal loan. Unfortunately, I think you wouldn't do much better interest-rate-wise on such a loan.
# posted by John @ 7:26 AM 
