Saturday, April 16, 2016

House Closing

After a lot of paperwork, it's looking like we will close on the house in the next ten days.

We are purchasing our home using a VA loan. In order to decrease the funding fee, we are putting 5% down. With the closing costs, fees, and down payment we will be writing a check for just over $16,000. If you have a disability rating from the VA, you are exempt from paying the funding fee. I've seen a few bits of information suggesting you can get the funding fee back if you have made a disability claim prior to closing and your claim is approved. The husband will likely get some sort of disability, so I will investigate whether we are eligible for a refund.

We looked at doing VA, FHA and conventional loans, but we determined that VA would be the best deal. Even after the funding fee, the interest rate was lower, and we wouldn't have to pay Private Mortgage Insurance (PMI). We locked in a rate of 3.375% for 30 years.

Now, we'd like to have our mortgage paid off before we quit working (about 10 years from now, possibly less). We decided to go with the 30 year because it gives us flexibility right now. I would like to invest our income in mutual funds rather than paying extra on our mortgage. I've decided we will utilize all our tax sheltered accounts before paying extra on our mortgage. Even though the hubs makes a good salary, after maxing a 403b, 457, HSA, and two IRAs, things are going to be tight--for now anyway. He will eventually make more, and that's probably when we'll start paying extra on the mortgage. I haven't decided yet. But for now, we need to separate ourselves from military life, get moved, and move into the new house.

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