Looking at using a VA Loan for a house. Have VA Disability rating so no funding fee. Is my math checking out?
| Price | Down Payment | Loan | Principal-Only Payment | Total Interest Paid |
|---|---|---|---|---|
| 550,000 | 10,000 | 540,000 @ 5.85 | 607,093 | |
| 550,000 | 0 | 550,000 @ 5.85 | 10,000 | 573,195 |
Is there something I'm missing? Putting 0 down and putting it toward principal-only payment after seems like I pay less in the long run.
Thanks!
0 Down VA Loan with Principal-Only Payment
byu/19TDG2000617078 inMilitaryFinance
Posted by 19TDG2000617078
1 Comment
You are not wrong. The bigger question for you is would there be a better use of that 10k. Is your emergency fund healthy, if not you risk having to use a higher interest rate source in an emergency like a credit card or personal loan. How are your retirement savings? Historically the stock market has provided better returns than the 5.85% you are saving by paying off early.