Veterans: Are You Claiming Your $40K In Mortgage Benefits?
Whether you own a home or are looking to buy, your VA status may entitle you to considerable mortgage savings.
Doing a quick check on your eligibility can go a long way in maximizing these hard-earned benefits. In fact, by partnering with the right lender, the average lifetime value is a staggering $40,000!*
VETERAN’S HOME BENEFITS CHECK
Check out these benefits to see which apply to your situation.
I AM A VETERAN AND WOULD LIKE TO BUY A HOME
The VA helps servicemembers, veterans and eligible surviving spouses with incredible home purchase benefits. Would you like to use any of the following benefits?
- No down payment. It takes an average of 12.5 years to save up the 20% down payment required on a conventional home loan2. Luckily, veterans can skip that step and become homeowners without waiting until they have tens of thousands of dollars. In fact, the VA loan program will allow you to purchase a home with as little as 0% down. In the current economic climate, it just makes good financial sense to own your own home. While interest rates remain low, you’ll be surprised at how affordable it is to buy vs. renting. See if you qualify.
- Lower monthly payments. Because the federal government backsVA mortgages, there is no need for private mortgage insurance (PMI) on low or no-downpayment VA loans. The average time it takes to eliminate PMI on a traditional mortgage is 10 years, so this can mean a savings of almost $200 per month and a whopping $24k in savings over the life of the loan.* Stop paying for private mortgage insurance.
- Preferential interest rates. The VA guaranty lowers the risk for lenders which means lower rates than what they charge other consumers. The interest rates offered to veterans average almost a quarter point less than standard rates. Over the life of a $250k VA loan, that can mean an average of $3,100 in mortgage payments. See current VA loan rates.
- Easy prequalification. In many real estate markets, there is stiff competition between homebuyers. One of the best ways to set yourself apart from other buyers is to get a VA prequalification letter. Prequalification is always free, and sellers and agents will take you more seriously when you’re shopping for your future home. You’ll also know exactly how much you can spend and which VA benefits you actually qualify for. Get your prequalification letter.
I AM A VETERAN AND CURRENTLY OWN A HOME
VA benefits vary depending on your home purchase history but always offer substantial savings that you shouldn’t pass up. Check out the benefits based on your mortgage history:
- I already have a VA mortgage. VA mortgage benefits don’t end once you’ve purchased your home. With a VA Streamline Refinance or Interest Reduction Refinance Loan (IRRRL), you have access to one of the greatest features of a VA mortgage – the ability to reduce your existing rate by refinancing easily and with little or no out-of-pocket expenses.Once you’ve been approved for your initial VA purchase loan, you can refinance without the documentation typically required by a bank. This can be especially helpful for veterans who may have experienced a significant change in circumstances such as the loss of a job, a bankruptcy, or significant decrease in home value.VA streamline refinance loans can often be completed within a month’s time, so check your eligibility to start saving today.
- I purchased my home but did NOT use my VA benefits.If you didn’t get a VA mortgage for you first home purchase, you’re in a great position to use your VA benefits now.The VA’s Cash-Out program gives you all of the benefits of a standard VA loan and had some distinct advantages to a standard refinance.Depending on the lender, beneficiaries can transition to a VA loan for up to 100% of their home’s appraised value. That means any amount above your current mortgage balance and below the home’s value can be withdrawn as cash. What’s more, there are no restrictions on what this money can be used for.Paying off your high-interest credit cards with your new VA loan can also provide substantial tax savings. Interest paid on credit cards is not tax-deductible, but any cash you may get from a VA loan is typically tax-free. In fact, it may actually reduce the amount of tax you may have to pay on your income because 100% of the interest on your VA mortgage is tax-deductible.See how much cash you’re eligible for with your VA loan VA mortgage benefits are one of the ways we honor the people who have given up so much for the freedoms we all enjoy. Let us thank you for your service by making sure you get the benefits you deserve.
Check your VA benefits today and make sure you’re taking full advantage of all the available savings you’ve earned.
*1 https://www.mgic.com/ratefinder/ Average savings calculated on a $250,000 mortgage, based on elimination of a $198 monthly PMI premium for 10 years ($23,760 total) and a rate reduction of .38% according to Ellie Mae Origination Insight Report December 2016; 4.14% rate average for conventional loans compared to 3.76% rate average for VA loans ($19,657 in interest savings over 30 years).
1. Fotrell, Q. (Accessed 2016, Dec 31). Saving for a Downpayment? It Could Take You Until 2027. Retrieved from: http://www.marketwatch.com/
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