Wednesday, December 28, 2011

Is a VA Home Loan Worth It?

Most Veterans know about the Department of Veterans' Affairs Home Loan program, and think that it will help them get their first home.  It is a great program, but before signing up for it take a look at other mortgage offers.  When I bought my first home, I found a better mortgage offer from the Department of Agriculture.  Everybody's situation is different, but in my situation, the option I chose worked best.  I did not have 20% to put down on my home, and most mortgages, including VA Home Loans require 20% down or you have to pay an extra fee every month until you have paid your mortgage down enough.  The Dept of Agriculture loan did not have that requirement, and I got a great rate.

Right now, with the rates as low as they are, it is important to look into buying a home if you have enough income.  I figured it out a couple of years ago, and I could pay the same amount on a mortgage as I was in rent on a two bedroom apartment.  With the rates as low as they were, and still are, I bought a $150,000 home and pay just over $1,000 a month.  The great thing about that vs. renting is that the money I pay toward my mortgage goes into equity on my home and not to a landlord.  I saw paying rent as throwing money away since I could afford to buy a house, and if you feel the same way you should talk with a real estate agent or a mortgage broker and take advantage of the low rates that are available today.

1 comment:

  1. Loan modification is helpful to help you make your loan easy to pay if you are having difficulties in paying your loan with its existing terms.

    what is a loan modification california