How to refinance your timeshare loan

A timeshare refinance isn’t easy, but if you’re willing to put in some research, finding a lower rate could make the work worth your time.

According to data in the American Resort Development Association’s (ARDA’s) 2026 State of the Vacation Timeshare Industry report, the average purchase price of a timeshare is $24,740. Average interest rates as of 2025 were around 13% to 15% for timeshare loans originated with three of the industry’s largest timeshare developers.

While you may save money with a timeshare refinance, there are some things to consider before applying for another loan. Here’s what every timeshare owner should know.

• Can I refinance a timeshare?
• Where can I find timeshare refinancing?
• How does a timeshare refinance work?
• What are the pros and cons of a timeshare refinance?
• Alternatives to refinancing a timeshare

Can I refinance a timeshare?

When you buy a timeshare, you typically have the option to finance your purchase through the developer. While developer financing may be convenient, it may not be the cheapest option.

One distinction between a timeshare loan and a home mortgage is the term length. With shorter terms than a home mortgage, you’ll generally see higher interest rates.

If you’re struggling to afford high interest rates, try exploring loan options. You may be able to make your monthly payments more manageable by locking in lower rates. Generally, the higher your credit scores, the more likely you are to qualify for low interest loan rates and more repayment flexibility.

Just keep in mind that if refinancing involves extending the length of your loan term, you may wind up paying more than you had planned over the life of the new loan.

Where can I find timeshare refinancing?

Timeshare refinance options could be a good idea if you’re eager to lower a double-digit annual percentage rate. Those looking to refinance through a third party may consider applying for an unsecured personal loan, which won’t require using your property as collateral.

To qualify for an unsecured personal loan, lenders may review your credit scores, income and debt-to-income ratio. Generally, a few factors, including higher credit scores, higher income and less debt, make it easier to qualify for a timeshare refinance loan.

Unfortunately, not all lenders will approve an unsecured loan for a timeshare refinance. If you can’t find one that works for you, you’ll have to consider other options.

Home equity loan or home equity line of credit

If you don’t qualify for an unsecured personal loan, you may consider refinancing with a secured loan, which requires collateral. A couple of examples of secured loans include a home equity loan or home equity line of credit, or HELOC.

If a timeshare owner also owns a primary home, they may be able to tap into their primary home equity and score a lower interest rate than with an unsecured loan by using their home as collateral.

Refinancing with home equity is risky because you could lose your primary home if you can’t make the payments.

How does a timeshare refinance work?

When you refinance a loan, you apply for a new loan with a lower interest rate. Once approved, you can use the new loan to pay off your existing one. You may also benefit from smaller or fewer monthly payments.

There are differences between a mortgage and timeshare refinance, though. When you refinance your mortgage, you generally need an appraisal to determine your home’s fair market value. Your home’s value serves as collateral if you default on your payments, making it less risky for the bank. But some timeshares may not have the same market demand, and lenders may be less likely to refinance a timeshare loan.

What are the pros and cons of a timeshare refinance?

Before applying for a timeshare refinance, you may also want to consider some pros and cons.

Pros

• You may qualify for a lower rate, paying less in interest over the life of the loan.
• You may lower your monthly payments, making the timeshare more affordable.
• If you’re considering an exit, paying off your timeshare mortgage may provide more options.

Cons

• You could save more money over time by paying off the timeshare loan early.
• There may be origination fees for a new loan.
• Tapping your home equity to refinance could put your property at risk.

Alternatives to refinancing a timeshare

If you don’t qualify for a timeshare refinance or prefer to explore other options, consider one of these alternatives.

Pay off your timeshare loan early

If you can make a lump sum payment without negatively affecting your other financial goals, this could be a good option. Just be mindful of potential prepayment penalties.

Try renting out your timeshare

If you’re too busy for trips and don’t plan to use your timeshare, you may offset some of your costs by renting the timeshare to other vacationers.

Work with your current lender

Another option to try is working with your timeshare developer. If your credit has improved since the original purchase, ask if it’s possible to lower your interest rate.

Plan your timeshare exit strategy

If you’re looking for ways to move on from your timeshare, you can start by contacting your timeshare company to learn about your options, like taking back your timeshare to resell. But owing money on your timeshare loan could affect the options from your timeshare company.

Check out ARDA’s Coalition for Responsible Exit for more info and help.

Next steps: Be proactive when buying a timeshare

Sales pitches can be tempting, so it’s important to keep cool and focus on the fine print when considering a timeshare. Watch for things like timeshare maintenance fees, property taxes, commissions, finance charges and closing costs.

You should also be comfortable with your timeshare loan interest rates, without planning to refinance later.

If you change your mind after the purchase, there may still be time to walk away. The number of days you have to rescind after signing your contract ranges around three to 15 days — the time frame varies by state, according to ARDA.