5 Tips to Help Veterans Save $53,000
If you ask any twenty Veterans whether they want to own their own homes someday, chances are all of them will say yes.
And if you ask the same Veterans if they are interested in tucking away some extra savings this holiday season, it is all but guaranteed that they will again say yes.
But data from the past five years reveals that 94% of Veterans have bypassed this benefit, only one of them has used a benefit that makes home buying unbelievably easier.
VA mortgage rates are at historical lows. Now is the time to lock in your rate. Even a modest jump in interest rates can have big consequences when applied to loans as large as a home mortgage. For example, consider the cost of waiting too long and having VA interest rates rise by a mere one percent. The difference between a 30-year, fixed-rate mortgage of $250,000 at 4% APR and one at 5% APR is nearly $150 per month and more than $53,000 over the life of the loan!
Good News: There’s Still Time to Lock in a Low Rate
The Veteran’s home loan program began in 1944 as a “thank you” to servicemembers returning from World War II. Since then, millions of current and former military personnel have purchased homes with no down payment and easier qualifying terms.
Veterans who use this loan program have access to 5 advantages that make Veteran loans hands down the best loan product out there.
- No Down Payment. Most loan programs require at least 3% down and as much as 20%. But a VA loan requires no down payment whatsoever. This saves Veterans years of scrimping and saving prior to buying a home.
- No Mortgage Insurance. Most home buyers pay hundreds of dollars per month in mortgage insurance if they make a down payment of less than 20%. Veterans who use a VA home loan do not pay PMI so they buy more house with less money.
- Less-than-Perfect Credit OK. The non-Veteran home buyer often needs stellar credit to buy a home. This isn’t the case for Veterans. Credit score minimums are much easier to reach.
Tip: Many Veterans assume they are not eligible for their home buying benefit. But the minimum service requirement is between 90 days and 2 years for most Veterans. Check your eligibility >>
- Lower Rates. Veteran home loan interest rates are about 0.25% lower than rates for conventional loans, according to a recent lender survey. Veteran home buyers will likely end up paying less in interest compared to the average home buyer.
- Closing Cost Reduction. Veteran home loans come with limits on how much you can be charged in loan fees. These loans come with built-in protections for Veterans.
Here’s How to Find Out if you Qualify
Veterans eager to get the process started should send their request to a VA lender.