2 questions - Lightstream reviews? Size of contract?

[KalamityJane]

Working on our first contract and had some questions come up -

1-Has anyone used Lightstream for financing and are they easy to work with? They seem to have really reasonable interest rates and we have good credit.

2- planning on a vacation in Nov/Dec 2023, and would need the 7-11 mo advantage. We’d need ~250pts for that trip. I’d like to end up with ~200pts total but wondering if it’s better to do 2 100pt contracts so they can get paid off easier and just look for a fully loaded 100pt contract right now?

For instance, Dec UY, 200/22, 100/23, 100/24 points, and just use the banked and current points to book? Then add on in 2023 with another 100pt contract.

 

[pianomanzano]

Used lightstream for my most recent contract. Very easy, great rates (also have good credit). Took about 2 days from the time we applied to the time the funds appeared in our account.

I'd opt for whatever is the best contracts that are out there (assuming you're looking to go resale). Generally you can get a better price per point for larger contracts. It's up to you whether you'd want to have a longer payoff period with a bigger contract (that could potentially be offset with renting any excess points). Hope I understood this question correctly!

 

[BamaGuy44]

We used them last December. Very smooth process, all online. Money goes directly into your account. It’s unsecured so they don’t need any details about the contract, etc. highly recommended

 

[sethschroeder]

I would be cautious with ever financing DVC especially with how the future economy might go.

Yes not asked for advice but I think is important to give regardless.

 

[Sandisw]

I have used Lightstream a few times for a few months when I was selling one contract and buying another to bridge me until I got paid.

Easy and a great option.

Honestly I think It’s more about finding the right deal vs one or two contracts.

Depending on the resort you want, it may take longer to find two smaller ones.

 

[KalamityJane]

I would be cautious with ever financing DVC especially with how the future economy might go.

Yes not asked for advice but I think is important to give regardless.

Unfortunately, I’m looking at VGC and I don’t generally keep ~50k on hand in cash. I was planning on paying it off ASAP (under 2 years, going for 1) and putting a healthy down payment down because I hate financing anything and generally agree with you. We only have our mortgage as our sole debt and live well beneath our means so while I’m not in love with financing, we do have assets that would cover us if anything went down. It’s also further complicated by us needing a 2 bedroom due to family size so smaller contracts won’t work very well. That is why I was wondering about 2 smaller contracts, so there was less debt liability, though. I appreciate you looking out for me!

 

[NVDISFamily]

Unfortunately, I’m looking at VGC and I don’t generally keep ~50k on hand in cash. I was planning on paying it off ASAP (under 2 years, going for 1) and putting a healthy down payment down because I hate financing anything and generally agree with you. We only have our mortgage as our sole debt and live well beneath our means so while I’m not in love with financing, we do have assets that would cover us if anything went down. It’s also further complicated by us needing a 2 bedroom due to family size so smaller contracts won’t work very well. That is why I was wondering about 2 smaller contracts, so there was less debt liability, though. I appreciate you looking out for me!

Sounds like you are like us. I hate to go into debt for a luxury purchase and could take money out of our investments to pay cash if this madness goes sideways but I don’t want to put too big of a hole in my Vanguard account so I’m financing for a few years and just going nuts to pay it off (all bonus checks and extra payments until its gone…. Plus no more fancy computer builds every other year……).

Some other tips. As your travel times fall within the 7 month banking window of June, I’d recommend a June UY for VGC as there are just WAY more June contracts on the market than any other UY. I would have preferred a DEC or early year UY, but June works for us and it offers way more selection if we want to buy in the future. Dream is to buy another 500 points in a few years if all goes well…..

Try and find two contracts from the same seller so you have more buying power. Should also save on closing costs. I was able to get two smaller contracts down to the same price per point as my larger contract buy using the leverage I was buying both.

Consider going for even lower bids if you can. I was okay with 255 a point but you might be able to go lower. I’ve seen them listed for as low as 240, but they only were on the market for a very short time.

Good luck and happy hunting.

 

[fixerupper]

I’ve used LightStream twice. Very quick and easy process. Did 3 year loans both times. First was a nice low interest rate and paid in a year. 2nd was a higher rate and is taking longer to pay - higher loan. It is very easy to auto pay, change payment amounts or add payments and usually beats out most other rates by quite a bit.

 

[HappyThoughtsTees]

Sounds like you are like us. I hate to go into debt for a luxury purchase and could take money out of our investments to pay cash if this madness goes sideways but I don’t want to put too big of a hole in my Vanguard account so I’m financing for a few years and just going nuts to pay it off (all bonus checks and extra payments until its gone…. Plus no more fancy computer builds every other year……).

Some other tips. As your travel times fall within the 7 month banking window of June, I’d recommend a June UY for VGC as there are just WAY more June contracts on the market than any other UY. I would have preferred a DEC or early year UY, but June works for us and it offers way more selection if we want to buy in the future. Dream is to buy another 500 points in a few years if all goes well…..

Try and find two contracts from the same seller so you have more buying power. Should also save on closing costs. I was able to get two smaller contracts down to the same price per point as my larger contract buy using the leverage I was buying both.

Consider going for even lower bids if you can. I was okay with 255 a point but you might be able to go lower. I’ve seen them listed for as low as 240, but they only were on the market for a very short time.

Good luck and happy hunting.

Ditto.
Family of 5.
We used Lightstream for our first VGC contract. 160 points. Low interest, 3 year term, paid it off in a year and a half.
I agree on the June UY, and two 100-pt contracts. VGC sells at a much higher price point than the WDW resorts, I'd think it would be difficult to find consistent buyers for the larger contracts.

To the OP- there are quite a few VGC contracts on the market currently, throw out some lowball offers and see what sticks!

 

[CaptainAmerica]

I have used Lightstream a few times for a few months when I was selling one contract and buying another to bridge me until I got paid.

Easy and a great option.

Honestly I think It’s more about finding the right deal vs one or two contracts.

Depending on the resort you want, it may take longer to find two smaller ones.

Another option for a "bridge loan" like that would be to borrow from your 401(k) for a couple of months. That way any interest you pay goes back to yourself.

 

[Sandisw]

Another option for a "bridge loan" like that would be to borrow from your 401(k) for a couple of months. That way any interest you pay goes back to yourself.

It wasn’t long enough to do that With my 403b. I could have taken from savings but didn’t want to. The interest for about a month was minimal.

 

[arich35]

For those who have used Lightstream, did you tell the company you bought resale from that you were financing the purchase?

 

[Stargazer65]

I have used Lightstream a few times for a few months when I was selling one contract and buying another to bridge me until I got paid.

Another option for a "bridge loan" like that would be to borrow from your 401(k) for a couple of months. That way any interest you pay goes back to yourself.

I did this very thing just this summer using a 401K loan to bridge while selling one contract and buying another, although it turned out to be unnecessary - seeing as I already got paid for the contract I sold a month ago and still haven't closed on the other.

 

[Jlo85]

1-Has anyone used Lightstream for financing and are they easy to work with? They seem to have really reasonable interest rates and we have good credit.

I've used Lightstream 2x and they're very quick and easy for bridge financing. One way to look at financing is to consider how much the interest will affect your overall costs. When I was pricing out financing to consider a bigger contract at a cheaper per point price, a $20K loan from lighstream at 6% interest was going to add about $8/point. It would be cheaper if you can pay it off quicker, but it helps to put in perspective whether financing is really even worth it. I found that an extra $8/point made it not as great of a deal as I thought.

2- planning on a vacation in Nov/Dec 2023, and would need the 7-11 mo advantage. We’d need ~250pts for that trip. I’d like to end up with ~200pts total but wondering if it’s better to do 2 100pt contracts so they can get paid off easier and just look for a fully loaded 100pt contract right now?

If you are just planning one trip (for now), renting is probably a better option.

 

[Spinster Travel]

Tip on Lightstream, typically the best rates are for a 36 month term, but they do not charge any pre-payment penalties, so get the longer loan and pay it off early - that's what I did. Like others have said, I too hate the idea of financing a timeshare, but my first contract was a larger chunk and it was just easier for me to get the loan and then pay it off in 12 months.

I did tell me broker that I was financing with Lightstream, but in all honesty, you technically are paying with cash becasue Lightstream will fund the loan directly into your bank account and then its up to you to get the funds to the title company at closing.