Is the VA Funding Fee Worth it?

It depends on you. If you use a VA home loan, there is no monthly mortgage insurance required. So depending on how much you have to put down on your loan, the funding fee could end up being much less than the amount you would end up paying on mortgage insurance over the life of your loan.

Here is a chart to help you determine what your PMI (private mortgage insurance) rates would be. Use these numbers to help you choose whether your funding fee is worth it to you:

% Down Payment PMI Rate (30 yr mortg.) PMI Rate (10,15,20 yr mortg.)
80.01% - 85% .32 .19
85.01 - 90% .52 .23
90.01% - 95% .78 .26
95.01% - 97% .90 .79


Example: On a $150,000 loan, with a Down Payment of 5% on a 30 yr Fixed Mortgage:
$150,000 X .78%= $1170/yr in mortgage insurance

FYI: FHA loans require a 2.25% fee, AND mortgage insurance.. so consider this when choosing a loan


Happy House Hunting!
~Blalock & Associates

www.gohomesearching.com

How Much House Can You REALLY Afford?

So, we are all aware of the housing crisis that our country has been experiencing in the recent years. One of the big reasons so many people have been finding themselves in foreclosure is because they were not smart about their money when buying their home. In essence, their eyes were bigger than their wallets! So do yourself a favor, and don't get caught up with the masses and find yourself struggling to pay your mortgage.

Here is a great site for figuring out what you realistically can afford!
http://www.hsh.com/calc-howmuch.html

Remember, just because you get approved for $X doesn't mean you have to max out your budget!


Buy Smarter now to be Happy later!

Happy House Hunting :)

~Blalock & Associates