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Why Now is the Best Time to Buy

homes0216_2Tony Dias
Branch Manager
Veterans United Home Loans of Hawaii
NMLS #222836

“Where do we want to live?” “When should we start looking for a home?” “Will we be able to afford the home that fills our needs?” These are questions typically asked by first time homebuyers when they make the decision to start the process of finding and financing a home.

These are all valid questions, but equally important is understanding the best time to make your move in order to take advantage of the best interest rates and mortgage loan programs. For veterans and military families, the best time to buy is now.

Interest Rates Are Still Low

Interest rates for a VA home loan are still low, currently starting at 4.25 percent. However, according to the National Association of Realtors, interest rates are expected to rise more than a full point to 5.4 percent. So if interest rates do rise to the projected 5.4 percent, how much impact could that have on a homebuyer? Let’s say a VA loan borrower bought a $500,000 home with a standard 30-year loan. With today’s interest rate of 4.25 percent, they’d have to make a principal and interest payment of $2,459. If rates rose to 4.50 percent, your principal and interest payment would increase to $2,533 a month. A $74 a month increase might not seem like a lot, but it adds up. With a standard 30-year loan, that increase could equal a total difference of $26,627 savings over the life of the loan.

If you were to wait until the interest rates reached the projected 5.4 percent, you’d be required to pay nearly $2,807. That’s a monthly difference of $348. The yearly difference between a loan with a 4.25 interest rate and a 5.4 percent interest rate would come to $4,176 in savings. On a standard 30-year loan, that would equal $125,661 in total savings over the life of the loan.

More Benefits to Purchasing Now

Not only are interest rates currently low, but there are numerous advantages that come with a VA home loan. VA loans were created to benefit veterans and their surviving spouses from World War II and they continue to provide numerous advantages to veterans and military families buying a home today. Some of those benefits include no private mortgage insurance and no required down payment. VA home loans are also easier to qualify for because VA lenders understand the challenges those who have served our country have faced. Relaxed credit score requirements and flexible debt-to-income ratios make qualifying for a VA loan easier than obtaining a conventional or FHA loan.

With the combination of low interest rates and qualification requirements designed to meet the unique needs of our nation’s heroes, now is the best time to start down the path of homeownership with the help of Veterans United Home Loans of Hawaii.

Upcoming VA Loan Seminars

Veterans United seminars include Powerpoint presentations & free workbooks. Question and answer periods follow the presentations. For more information and directions, call (808) 677-LOAN (5626).

Tuesday, February 18

6 – 8 pm Veterans United Home Loans of Hawaii Educational Center 94-539 Puahi St., Waipio, HI 96797

Tuesday, March 4

6 – 8 pm Veterans United Home Loans of Hawaii Educational Center 94-539 Puahi St., Waipio, HI 96797

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