Veterans Can Reduce Mortgage Costs

Mortgage acceleration for veterans is probably the best way military veterans can save money on their mortgage and cut years off their mortgage payments.  Most veterans know that homeownership is an excellent long-term investment. But it can also be an expensive one, especially for military members and veterans who qualify for mortgage-interest tax deductions. And since the average military family only earns $66,800 per year (and a quarter of them make less than $40K), paying off your mortgage can seem like an insurmountable goal. Luckily, there are several ways that you can save money on your mortgage! In fact, veterans can save tens of thousands of dollars on their mortgage by using a mortgage accelerator. The most ingenious mortgage accelerator doesn’t even require making additional mortgage payments! Read on…

Pay down your mortgage faster.

A common way for veterans to accelerate the amount of time they pay off their home loan is by paying extra on it each month. However, this is not the best way. Veterans can also consider refinancing to lower their interest rate and make more affordable payments, or taking advantage of VA loan refinance options if you’re a veteran.

Live on one income and apply the other to your mortgage.

Are you a military family with two incomes? You may be able to save money by living on one income and applying the other to your mortgage. In this scenario, you would pay bi-weekly payments instead of monthly ones. Bi-weekly means that you pay half of what you normally would in a normal month (or 26 payments per year). You’d use this half payment to make extra principal payments on your loan.

A better way to pay down your mortgage faster is with a mortgage accelerator system. There are two ways to accelerate your mortgage using a mortgage accelerator. One way is to get a HELOC, or home equity line of credit, and follow the instructions on the mortgage accelerator calculator that you can get from Smart Loan Advisors. Another way is to use a small portion of your savings instead of a HELOC. The advisors at Smart Loan Advisors can show you which method is best and set up the system for you. 

Remember that having enough money in savings is also important when accelerating your mortgage because any unexpected expenses will need funding from somewhere else besides paying down debt faster!

The best way for veterans to determine the best financial outcome is to start with a financial calculator. Use a financial calculator that combines budgeting, financial planning, mortgage planning, interest cost reduction, and retirement planning. Financial calculators for veterans at Smart Loan Advisors all include algorithms that calculate the best financial outcome for any veteran.

Make a bi-weekly payment on your mortgage.

Bi-weekly payments are exactly what they sound like—payments that come out every two weeks instead of once a month. You may have heard that you can save money by making bi-weekly payments on your mortgage, but how much will it really save? It all depends on how long you’ve been in the house and the interest rate you’re paying.

For example:

If you bought a house at age 25 and took out a 30-year fixed loan at 4% interest rate, then after 10 years of making monthly payments (360 months), your remaining principal balance would be $169,823.

If instead, you made biweekly payments for the same time period (360 months) but with half of each payment being applied to principal reduction and half being applied as regular interest—using our handy calculator–you would end up with just over $191,000 left on your mortgage—an extra $22K!

Instead of saving $22,000 on a mortgage using bi-weekly payments, veterans can save over $50,000 with our mortgage accelerator calculator! Request a free demo.

Increase your monthly payments when you receive a raise.

• Increase your monthly payments when you receive a raise.

When you receive a raise or bonus, there are two ways to increase your mortgage payment:

• Increase the amount of money sent to your lender each month. If this option is chosen, the additional funds will go toward principal and interest rather than into an escrow account for taxes and insurance (which can sometimes be sidestepped altogether). This method of paying off your mortgage is referred to as an extra principal payment or EPP.
• Automate an increase in your mortgage payment every time you get paid—even if it’s just $5 more per month. This method helps avoid overpaying by automatically increasing the amount of money that goes toward principal each time it’s applied to your account.*

But veterans can reduce their mortgage WITHOUT EXTRA MONTHLY PAYMENTS! Our mortgage accelerator calculator shows how using a veteran’s actual income and expenses. Schedule your demo with us.

Refinance and lower your interest rate.

First, refinance to a lower interest rate. If your current rate is above market, you could save anywhere from 0.25% to 1% or more by refinancing to a lower mortgage rate. This will result in monthly savings for as long as you stay in the home.

Another way veterans can save money on their mortgages is by refinancing into a shorter term loan or even reducing the amount of principal balance owed on the current loan (which results in less interest paid over time). This can help veterans reduce their overall monthly costs while giving them more flexibility if they move before they’re ready because of job changes or other life events!

Take advantage of VA loan refinance options. A VA streamline loan can help you lower both your interest rate and monthly payment while allowing you to skip the strict credit checks required with a full refinance. VA loans are also free of prepayment penalties, so if you want to make additional principal payments, you don’t have to worry about any extra fees or penalties.\n

As a veteran of the Armed Forces, you likely have access to one of the most beneficial programs for homebuyers: a VA loan. However, there are several ways your VA benefits can be used to save money on your mortgage and help you achieve homeownership sooner.

First, take advantage of VA loan refinance options. A VA streamline loan can help you lower both your interest rate and monthly payment while allowing you to skip the strict credit checks required with a full refinance. Also important: You don’t have to worry about prepayment penalties with a streamline refinance because they’re free from that pesky caveat!

Second, accelerate your mortgage payments by using the strategies we teach at Smart Loan Advisors. This can save thousands over time as well as speed up how long it takes before you finish paying off your home loan altogether!

Military members and veterans have several ways to save money on their mortgage.

Veterans seeking a VA loan should consider a number of options. This type of financing offers the following benefits:

• No down payment or mortgage insurance requirements. The VA requires no down payment and doesn’t require private mortgage insurance (PMI), which can add hundreds per month to your cost.
• Low interest rates and closing costs for all veterans, even those with less than perfect credit scores or cash reserves. The average closing cost is currently around $3,600 for conventional loans, but it’s just $1,750 for VA loans!
• Flexible underwriting guidelines that don’t require traditional documentation like tax returns or W2s from potential borrowers as long as they have other supporting evidence such as pay stubs or bank statements to prove their income levels. If you’ve seen some major life changes over time—such as divorce and needing more money for child care—the VA may allow you to refinance even if your payments have increased substantially since you first took out the original loan when your spouse was still around making more money than you were back then (or vice versa).

Veterans can get a head start on saving money by accelerating their mortgage payments. This is a great option for those who want to pay down their loan faster or reduce the amount of interest they pay over time. Of course, there are other ways to save money on your home loan too! If you’re looking for an affordable way to refinance your mortgage, consider using a VA streamline loan which allows you to skip strict credit checks and has no prepayment penalties. If you have questions about whether refinancing is right for your situation, contact our team today at (800) 617-8501 or visit www.VeteransFirstmortgage.com for more information about refinancing options available through Veterans First Mortgage Corporation!

Let us design a financial plan specifically for you

Hope these tips were helpful in getting you started on your journey to financial success! If you want some more personalized advice, we would be happy to help design a financial plan tailored specifically for you and your family. Schedule a call today and let’s get started!