In spite of high interest and a struggling economy, veteran homebuyers are positioned to come out on top on home purchases

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Veteran Mortgage Solutions by is licensed under VMS
For years I have heard that homeownership was the “American Dream." Apparently, I wasn’t living the dream for the first 45 years of my life. In 2018, I purchased my first home, utilizing my VA Certificate.

Things were vastly different in 2018 than they are now. That was pre-pandemic and pre-economic meltdown that has developed over the past few years under the current administration’s free-for-all spending spree and the inflation that goes along with that.

When I purchased my home, the interest rates were in the low three percent range. The inflation rate was at 2.49%. In 2023, the interest rates are in the eight percent range and inflation has gone into the eights and dropped back down into the low threes.

Many people are wary about purchasing a home now, even with the benefits that come with using your VA benefits.

However, in speaking with Mackenzie Verdi with Veteran Mortgage Solutions, for veterans, buying now has many advantages.

Unlike what has been true over the past 18 months, home buyers are not currently competing with multiple offers for the home of their choice. Sellers are accepting offers at or below asking price, rather than the bidding wars that were prominent in 2022.

What about those interest rates though? Currently, those rates are in the high seven to low eight percent range. It is more than twice what it was in 2018, and more than three times what some were buying at in early 2021.

So, what is the advantage for veterans?

As interest rates begin to drop, veteran purchasers will have the ability to refinance after making seven on-time mortgage payments. And that process, much like their original purchase, is facilitated with little to no money out of pocket. They can also facilitate multiple refinances over the life of the loan, so as rates continue to decrease, veterans will have a much simpler time reducing their mortgage given the VA lending process.

I was able to use the the following program to go from a 3.25% down to a 2.4% rate that I currently still hold. 

Traditionally, the VA requires anywhere from a quarter point to a half point reduction in the interest rate to qualify for the Interest Reduction Refinance Loan (IRRRL).

Following the close of the loan, the veteran makes the appropriate number of on-time payments and then can apply for and go through the IRRRL process.

In theory, the veteran can continue to work to reduce their monthly mortgage payments lower.

VMS offers classes for veteran homebuyers to educate them on the processes of the initial purchase as well as aspects related to IRRRL. The representatives that teach the boot camps are not only lenders, they are also veterans themselves.

Veterans helping veterans. Can't get much better than that. Contact VMS today.
 
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The opinions reflected in this article are not necessarily the opinions of LET
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