Looking for a VA mortgage consolidation options?
Booyah Mortgage has tools to help borrower. This mortgage calculator may help you to decide whether or not it would be advantageous for you to consolidate a first and second mortgage and refinance into a single mortgage with a potentially lower interest rate. Not only will this calculator calculate the monthly payment and net interest savings, but it will also calculate how many months it will take to break even on the closing costs. Note: Be sure to only include the principal and interest portion of your monthly mortgage payment, i.e., do not include any escrow portions (property taxes, insurance, etc.).
Common reasons to consolidate your mortgages
Some homeowners have two or more mortgages because they took out a ‘second mortgage’ for extra cash at some point in time. These second mortgages are more commonly known as home equity loans. Some others have more than one property, as they’ve invested in real estate for additional rental income and equity. There are a few very good reasons you might want to consolidate multiple mortgages into one.
Get lower interest rates
Because the markets are always fluctuating, interest rates are constantly going up or down. We’ve seen large changes in interest rates within the past decade. If one or more of your mortgages were issued when rates were higher in general, you may stand to benefit from consolidation at a lower rate. This could potentially save you tens of thousands of dollars over the term of the loan.
Decrease your payments
When consolidating, it is possible to actually decrease your payments if you find you’re having a hard time keeping up with your mortgages each month. However, this is not generally recommended unless you’re in dire circumstances. Your payment can go down each month, but the term will increase, meaning that you may end up paying far more in interest in the long run.
Switch from adjustable to fixed rates
If one or more of your mortgages is on a variable or adjustable-rate schedule, you may want to consolidate it with your others into one fixed-rate VA Loan. This will protect you from unexpected rate and market fluctuations, and can save you stress and thousands of dollars over time. It’s always a better idea to have a fixed-rate mortgage, as it mitigates the risk of payments going up at any point in time. It’s especially beneficial to consolidate to a fixed rate when interest rates are low.
Consolidation can help you pay your loans off faster
When you take advantage of consolidating into a single, fixed-rate VA Loan with Booyah Mortgage, you may be able to pay your loans off faster, meaning that you may own your property in full sooner. To do this, the payment amounts would be higher each month, but the interest rate would be lower and fixed. This results in a shorter term and far less interest paid by the end of your term. It can also make budgeting easier to grasp, as you’ll only have one payment instead of two or more.
Find out if consolidating your mortgages is right for you
Booyah Mortgage is here to serve our veterans, and we have the knowledge and experience to help you decide whether consolidating your mortgages makes sound financial sense. Don’t hesitate to contact us with any questions you may have; we’ll help you with all your VA Loan needs!
“A “Veteran”- whether active duty, discharged, retired, or reserve- is someone who, at one point in his life, wrote a blank check made payable to “The United States of America,” for an amount of, “up to, and including his life.” That is honor. And there are way too many people in this country today, who no longer understand that fact. Our mission is to ensure that we give back to those who wrote that check.” – Shane Johnson
Booyah Mortgage servicing Veterans and Borrowers across Lake Mary, Orlando, Jacksonville, Pensacola, the Gulf Coast, and All of Florida.
Questions about VA home loans and the right mortgage for you and your family?
Give us a call (833) 726-6924
Booyah VA Mortgage Florida service areas include: Brevard, Clear Water, Duval, Jacksonville, Fort Walton Beach, Key West, Lake Mary, Lynn Haven, Mary Esther, Miami, Miami Beach, Milton, Orlando, Panama City, Panama City Beach, Pensacola, Starke, Tallahassee, Tampa, Valparaiso, West Palm Beach, and all of Florida.