Money Matters June 2021: Expert Advice on VA Lending & Personal Finance

Money Matters June 2021: Expert Advice on VA Lending & Personal Finance

Booming Housing Market Gives Military Families New Options

Question: How Can Military Families Benefit from the Booming Housing Market?

Answer: The U.S housing market gained close to $2.5 trillion in value in 2020 — the most significant increase since 2005. Some states saw an increase of nearly 8%, and 2021 is projecting an even higher increase. What does that mean for you as a homeowner? This increase in equity is possibly one of your most valuable assets. This year many homeowners used their equity asset by doing a refinance that allowed for cash to be taken out of the home. For those that haven’t gotten into the “Refi Boom,” rates are still extremely low and the potential savings per month on average are close to $250. That’s $3,000 a year and $90,000 over the 30-year lifetime of the mortgage – this sum of savings could fund your home repairs, vacations, investment portfolio or college savings.

Owning a home allows for secure savings, especially as home values continue to increase and monthly savings compound by reducing your interest rate with a refinance.

The 411 on VA Mortgage Financing

Current or former military members have the opportunity to take advantage of a full suite of benefits through a VA Mortgage. With low interest rates and flexible lending guidelines, the VA Loan was specifically created to benefit the military community.

Who is Eligible for a VA Loan?

To be eligible, you must meet one of the conditions below:

  • Active duty or honorably discharged veteran
  • Served over six years in the National Guard or Selected Reserve
  • Surviving spouse of a service member who passed in active duty and spouse has not remarried

Benefits of Using Your VA Loan

Qualifying for a VA mortgage provides a host of benefits and working with a VA loan expert who understands the unique conditions around a VA loan will ensure you get the most out of your loan. The benefits are many:

  • May not need a down payment
  • No maximum loan limit *county/city loan limits do apply
  • Typically provides lower interest rates than Conventional or FHA financing
  • Lower closing costs
  • Qualify with lower credit scores and higher debt to income ratios than other loan types
  • No monthly mortgage insurance
  • Use your VA loan multiple times

Like other traditional mortgage programs, a VA mortgage requires an underwriter to review and evaluate your income, debts, and financial and related documents. This review ensures program eligibility and protects your financial wellbeing.

Circle with United States flag and house icon inside

What About Refinancing Your Current VA Loan?

The “Streamline” Loan Makes it Easier

A VA mortgage allows you to maximize your equity or take advantage of a lower interest rate to reduce your payments.

Also known as an “IRRL” interest rate reduction loan, the “Streamline” is a popular refinance option among current VA borrowers. When current interest rates are lower than the rate you secured on your mortgage, your VA loan expert can help you take advantage of a VA IRRL to lower your rate and save on your monthly payment. In many cases, your term will not change. For example, if you have been paying your 30-year fixed-rate mortgage for ten years, you could streamline it into a 20-year mortgage. With the lower rate, you could possibly have the same or lower payments and still pay off your mortgage in the same amount of time.

“Cash-Out” Options

If you’ve considered renovating your home and building that home office that you desperately need or allowing your home equity to pay off any high-interest credit cards, the refinance is the way to leverage your equity for those needs.

Because home values have increased dramatically, the equity in your property can provide the buying power you need.

What GoVALoans.com will do for you:

As VA mortgage experts, GoVALoans.com has a team of originators and mortgage support staff to help you achieve your mortgage goals no matter where you are around the world. These experts will:

  • Guide you through every step of the process
  • Provide education to empower you and your decisions
  • Leverage real estate relationships to help with contract negotiation
  • Secure the lowest rates possible
  • Provide a seamless closing

You have earned the benefits of the VA Mortgage. Still have questions? Our experts are here to serve you with free credit counseling or refinance support to get the most of out your home investment.

Contact us at info@govaloans.com.

Phil Jawny is a professional lender with nearly 20 years of experience in the business and the founder of GoVA Loans. His industry knowledge is extensive, spanning from loan reorganization to commercial mortgages to, most importantly, selling and managing VA Loans. Phil has a passion for serving military families. His goal is simple — to help make the loan process simpler for families so they can get the loans they deserve and build wealth through real estate without hassle. To get ongoing advice or to submit a question for the “Money Matters” column, visit facebook.com/Govaloans or follow @GoVAloans on Instagram & Twitter.

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