I would recommend not financing it. When we were looking into it, the consensus we came to was it was not worth it financially in the long run if we had to pay interest on a loan. We bought a 75 point contract direct from Disney (I think they upped the minimum to 100 thought) that will serve us as long as we can stay in studios. Our thinking being we can buy another contract in the future when we need to start booking more bedrooms and we are able to buy it outright again. Our basic vacation strategy is to use banked/current year points, then current/borrowed points, then take a break and repeat the cycle. My in-laws are DVC owners as well and we will also split vacations - one of us booking a 1 or 2 BR villa for a few nights, followed by the others booking a 1 or2 BR villa for a few nights.
We also chose to buy direct from Disney thinking we could tap into the resale market in the future, but retain whatever perks come from buying direct that they already started taking away from resale contracts.
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I think not at this point in time. You have a lot of financial draws on you - 2 kids, maybe one more. Kids suck the money out of you. IF you said you had the cash to buy I would say yes, but financing and planning on paying it off over the full term of the loan isn't wise as the interest rates are very high.
If you can afford a smaller contract of 100 points that will cover your families needs for one trip a year in a studio for your family of 4 then go that route first and then you can add on down the road. Keep in mind when you then become a family of 5 with the 3 kids all over 3 yo you will have to get a 1BR or have bought at a resort which can accommodate 5 in a studio. That then will cost you more points, which might lead you to needing to buy an add on contract. There are many variables but i think you need to talk yourself off the ledge right now and give it more time to think about the financial impact. It isn't just the loan, you will also have monthly maintenance fees on top of your loan payment.
None of us know your financial situation - are you the only one working, does your wife financially contribute too, are your kids going to be in daycare, will you need a new car soon? There are so many factors which can make owning DVC with a loan a burden vs an enjoyment.
Great advice. Thank you for sharing. The tough part is I did the math and right now financing a 10-year loan on the amount of points cost less than purchasing 75-100 point contracts to build on. Obviously not taking into account maintenance dues