When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.
If you are a veteran and are planning to purchase a new home, there are several advantages that your service to your country may provide: Here are a few of them:
You don't have to have a down payment with a veteran's home loan.
Sometimes, expenses associated with living in new places can make it difficult for a veteran to save a large amount of money. With a veterans home loan, a qualified service member can borrow the entire amount of the home's value instead of having to put a specific amount of money down to secure the loan. This benefit is available regardless of the home loan amount.
Thus, the veteran would only need to be pre-approved for his or her loan amount as he or she starts shopping for a new house. The loan amount will likely be dependent on the income available to the veteran as well as his or her creditworthiness.
With a veteran's home loan, there is no need to purchase mortgage insurance from a private source.
When a typical homebuyer borrows money to cover the cost of his or her new home, he or she will likely be expected by the lending company to pay mortgage insurance monthly. The private mortgage insurance is used as a protective measure for lenders in the event that the homebuyer defaults on the loan.
For veterans who purchase a home using a veteran's home loan, private mortgage insurance is not required. The requirement is relaxed because of the government's backing of the VA loan. The savings that are realized by avoiding private mortgage insurance payments can help the veteran pay off his or her home loan much quicker.
Veterans often pay less interest on their home loans.
The interest rate of a veteran home loan may be less than that of a typical mortgage loan because of the government's backing of the loan. Many banks and other financial institutions lower the rates for veterans due to reduction in risk.
Active service people often receive a housing allowance that can help cover the cost of a home.
For people who are still actively in the service, a housing allowance is usually provided. This allowance is included as income, so a military service person can pay a portion of his or her veteran's home loan with this additional money.
To learn more about the advantages of a veteran's home loan, schedule a consultation with a lending institution in your area, such as Texas Veterans Home Loans.Share