What You Need To Know About a VA Loan Early Payoff
- MacAsh Home Loans
Paying off any loan can give you extra money toward your other financial goals. The savings in interest alone can stack up. And for military homeowners, there’s an extra incentive to pay off a VA loan early—there are no prepayment penalties, which can be high with other types of loans. Here’s how to make the best of a VA loan early payoff.
Start by Doing Your Homework
If you’re considering paying off your VA loan early, speak with your mortgage company to go over the current terms of your loan and find out what an early payoff would look like.
Additionally, you can schedule an appointment with a financial advisor who can help you answer key questions before you decide to pay off your mortgage, such as:
- Do I have an adequate emergency fund in place?
- Am I on track for my retirement and other financial goals?
- What does my debt situation look like?
You might also talk to your financial advisor about how you plan to pay off your VA loan. Your options can include paying it off in cash, refinancing, using a consolidation loan, or taking out a private loan. A financial advisor can help you choose the right pay-off plan that fits your goals and budget.
Identify Your Long-Term Goals
What is your goal for paying off your VA loan early? Other than the obvious benefit of not having a monthly mortgage payment, your goals might include:
- Freeing up money that you can use in retirement
- Having more money each month to put into savings
- Giving you equity you can tap into in the future
- Saving yourself thousands of dollars in interest
- Wanting to own your home outright
Spend Smart After You Pay It Off
Once you have successfully paid off your veteran's loan, it’s important to continue making wise financial decisions to help ensure a bright financial future.
Maintaining smart spending habits will put the money previously applied to your loan payments to good use and help you reach your financial goals.
Other Options
If you’re not ready to completely pay off your VA loan, but you’d like to make a dent, you have options. You can:
- Make bi-weekly payments instead of monthly payments. You’ll have made a full extra payment on your loan by the end of the year.
- Make an extra payment or two throughout the year. Or pay a little extra each month.
- Refinance your VA loan to a shorter term.
If You Have Questions
Don’t hesitate to reach out. We’re happy to help answer any questions about a VA loan early payoff. Contact us today!
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