Timeshare purchases are typically financed by consumer loans made by the resort developer. The terms depend upon the purchase price and the amount of the buyer's down payment.

Expect to make at least a ten- percent down payment at the time of purchase. Down payments may be made with cash, check or credit card. The balance or mortgage can be financed by credit card, a bank or lending agency of your choice or the resorts financial institution.

Most resorts financial institutions will finance up to 90 percent of the total purchase price plus closing costs and pre-paid maintenance fees. Interest rates may vary and are subject to market conditions.

A typical term is five-years. Usually there are no origination fees and no prepayment penalties. These loans are considered personal unsecured. There's no lien on your property. Loan approval is granted based on income and credit rating. However, poor ratings don't mean you won't be approved -- but may result in higher interest rates. Approvals are usually received at the time of sale.

Check with a professional tax accountant to see if the interest on your vacation ownership mortgage is tax deductible.