We recently helped an active duty service member become a homeowner. He purchased his first home using his VA benefits. He purchased a home for $250,000 and no down payment was required. With proper sales negotiations, his Real Estate Agent was able to get the home seller to pay most of the closing costs.
The 5 YEAR ANALYSIS
•In 5 years his home should be worth about $289,000 with a modest 3% appreciation rate
•In 5 years he will owe about $227,000 on his mortgage
•At that time, his equity position will be about $62,000 ($289,000 – $227,000)
•His BAH was $2,286 and his new mortgage payment is $1,495 leaving $791 per month to bank. In 5 years he will have $47,460 in the bank ($791/month X 60 months)
In 5 Years, he will be approximately $109,000 ahead compared to continuing to live on base!
Please contact us to discuss your specific numbers and how this financial strategy can help you build net worth too!