Learning to Invest is Just as Important as Saving

3 Benefits Of VA Loans

If you currently serve in the military or have at any time in the past, you will most likely be eligible to get a VA loan, which is a special type of mortgage designed only for veterans. VA loans are great options for people with military experience, and here are three reasons you might want to look into a VA loan if you want to buy a house.

You do not need a down payment

VA loans are loans that are backed by the government and issued through various banks and lenders. When you qualify for a VA loan, one of the top benefits is that you will not need a down payment to get the loan. You should understand, though, that VA loans are only available for certain types of homes. For example, you cannot typically buy a fixer-upper home with a VA loan. The home you purchase must generally be ready for you to move in and must not need a lot of work.

There is no mortgage insurance

No matter what other type of loan you get when buying a house, you will probably need to pay private mortgage insurance on the loan if you borrow more than 80% of the home's value. Luckily, with VA loans there is no mortgage insurance. This will save you a lot of money on your loan, and it is one of the top advantages of VA loans compared to other loan types.

There is a fee you will have to pay to get the loan, though. This fee is a one-time fee that is payed to the Veteran's Administration. The rate varies, but it is typically between 1.25% to 3.3% of the total loan amount. 

They offer competitive interest rates

One of the things people always want to know about mortgage loans is the interest rate, because interest rates affect the amount of money you will pay in all for a loan. The good news is that VA loans offer competitive rates on loans. If you compare the interest rates of VA loans to other loan types, you will find that they are very similar.

There are a lot of different types of mortgage loans available today, and you may want to look into all the options available for your situation before choosing one. To learn more about VA loans and other types of mortgage loans, contact a lender that offers home mortgages.


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Learning to Invest is Just as Important as Saving

While most parents and teachers tell teenagers how important saving money for emergencies and retirement is, few give them advice about investing. While there are more and more high schools offering finance classes, they are often electives that not every student is required to take or they are classes that just cover budgeting. While saving money is important, I think learning to invest wisely is just as important! I meet many people today who think that investing in property, mutual funds, and stocks is a bad idea because they think they will lose money. The truth is that investments made carefully and strategically (a good plan is important) usually come with a great return and little risk. I wanted to begin a blog to share my investing tips and other finance tips to give people the knowledge that they often don't learn in school!

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