I would like you to think about the value of a historically low interest rate for the future buyer of your home.  The Veteran Loan has a unique attribute and that it is an assumable loan.  An assumable loan is one in which another party may “assume” the remaining principal balance on your loan.  With the interest rates being relatively low the past 15 years and all of the different programs available, the value of an assumable mortgage has not been talked about as much.  The reason for this is all of the different programs, enabled individuals to qualify for their own loan without a lot of documentation and the interest rates have stayed relatively low.  With the changes that have recently taken place, it is a lot harder for individuals to qualify for their own loan and as a result the value of an assumable loan naturally increases.

We do not know what the future may hold for rates, but chances are probably good that interest rates have the possibility to climb significantly in the future following these historic lows.  Ask yourself this question when the time comes to sell your property and you are able to offer an interest rate of 4.5%-5% on the property, when interest rates are at 8-9-10% for a 30 year fixed what kind of effect would that have on the value of your home?  Logic would lead me to believe that it could have a tremendous value in creating a larger pool of potential buyers for your property.

Offering a lower interest rate on your property, would enable a lot more options for people when trying to qualifying to purchase your home.  Let’s look at an example.  This example is evaluating only taking into account Principal & Interest.  It is also assuming that this individual does not have any other debt.

• You owe $200,000 on your home and you refinance it to 4.75%.  Your P&I is now $1,048.51 due each month.  Your buyer that would be assuming your loan would only have to make $3,000 a month or $36,000 a year in order to qualify for this loan.
• Buyer tries to get his own financing and interest rates are around 8%.  The P&I is now $1,474.87 due each month.  Your buyer would now have to make $4,250 a month or $51,000 a year in order to qualify to purchase your home.

Take a look at those two comparisons.  Keep in mind this is assuming that your future buyer does not have any other debt.  You will notice that the 2^nd example would require a 42% increase in your future buyer’s overall income.  As you can see having that much lower interest rate assumable greatly increases the market for your home.  Many future homeowners that plan on keeping their home long term would be willing to pay a premium for an interest rate that low as well.  You could require a premium of cash in order for them to assume that loan.  You could then use this extra money to offset your future loan on your next property.  All and all you can’t go wrong refinancing to a lower interest rate, even if you plan on selling your home in the next 10 years.  The benefits will definitely offset the costs at that time, if you take advantage of the assumable features of the Veteran Home Loan.

One of the major reasons to move to Texas would be the overall friendly nature of the people that live in the state. Texas has a laid back open minded atmosphere and a casual feeling that is very welcoming to anyone who would want to move here. Most of the state is fairly patriotic and conservative, which many veterans find as an easy transition into a new area.

There are many large cities in the state, with surrounding suburbs, or small towns on the outskirts, so there are many different types of locations to choose from, all of which can be purchased with a Texas VA loan! Texas is an expanding state. There is room to grow, which is nice for any family. Right now, the housing is cheap and there are many opportunities for any kind of environment your family wants. In the city a variety of entertainment is available; shopping, bars and restaurants, theatres, galleries, and much more. In the suburbs and outside of the cities, there is hiking, parks, pools, lakes, rivers, the mountains, the beach, and again much more. It seems that there is an infinite amount of space in Texas. Don’t forget the warm weather, which allows an almost year round outdoor long play time. In fact, the heat in the summer is just about all that would keep you in at times, if at all.

Texas is home to many major attractions around the state to visit as well. The NASA Space Center is located in Houston. The Alamo is a very historically important monument for our country. It is located in San Antonio and symbolizes a battle where many Texans died. The Schlitterbahn Water Park and the Austin Zoo are just two places for tourists or locals to visit for a day of fun and relaxation. Texas as many national parks as well that can we visited for short trips or long vacations.

Another major reason that now would be a good time to move to Texas would be that this state is on the economic rebound. Opportunity for work is promising as jobs appear fairly plentiful. The financial magazine, Forbes, ranked small and large cities throughout America based on the best places for jobs in 2009. Texas claimed eight of the top twenty spots, including major cities Austin, Houston, San Antonio, Fort Worth, and Dallas. For the unemployed this could be a fantastic prospect for work. The energy and healthcare industries in Texas especially, have many facilities available to those in search of work.

Texas has many facilities available to its inhabitants. Its medical centers are superb. The state houses some of the best burn and trauma care centers in the country, as well many cancer research centers. There are numerous universities around the state, such as University of Texas, Texas A&M, Texas Tech, Texas Christian, Baylor, Texas Women’s University, and many more. The school districts are very highly recommend. Transportation is readily attainable, as there is easy access to public buses and cabs.

Now is a great time to move to Texas. The state welcomes new people in and is even offering jobs! With an abundance of entertainment, and a safe place for your children to grow up, your family will have a wonderful place to develop. There are 7 air forces bases, 7 military bases, 1 coast guard base, and 3 naval bases in the state as well. Many veterans already live here and feel comfortable with this atmosphere the state provides. Why not move here?

Early settlement began when Polynesians migrated to the island in canoes. There were a few different groups of these original migrants. In 1810, under King Kamehameha, Hawaii was united as a whole for the first time. The Kamehameha family ruled until 1872. Throughout the 1800’s French and British missionaries were sent to the islands. There were multiple invasions of the islands, including one incident where Kamehameha surrendered to the Royal Navy, but was later given Hawaii’s sovereignty back and an apology. Hawaii was recognized by the U.S., the United Kingdom, France, and Germany as an independent sovereign state until 1898. Hawaii also signed a treaty with the U.S. in 1874 for exclusive trading rights. Between 1887 and 1895 there were five rebellions against the government of Hawaii.

In 1896 President William McKinley wrote a treaty of annexation, but it failed within the senate. He and Congressman Francis Newlands then wrote a joint resolution called the “Newlands Resolution” in 1898 for the official annexation and Hawaii officially became territory of the U.S. on February 22, 1900. On August 21, 1959, with a 94% vote in favor, Hawaii became a U.S. state under the Presidency of Dwight D. Eisenhower.

Since this time, Hawaii’s military has been a part of the United States’ military. Hawaii has been a very large part of the U.S. Navy and its developments had beginnings even before it was a state.

The first U.S. Navy shoreline presence was just outside of Honolulu in 1860. It resulted from the lease of a coal station. In 1893 the USS Boston located in Honolulu insured the successful dethroning of Queen Liliokalani. In 1895 the Royalists attempted a counter-revolution and the presence of the USS Philadelphia diminished this possibility. After the annexation of Hawaii in 1898, an order to prepare Honolulu for warehouses, wharves, and coal sheds. There was also an order for the survey of Pearl Harbor. “Naval Station, Hawaii”, which was to be located in Honolulu, was commissioned in 1899. More land was designated for naval use, and the land around Pearl Harbor was under acquisition for naval use. By 1940 over $100,000,000 had been used on the improvement of this establishment.

On December 7, 1941 Pearl Harbor underwent one of the biggest attacks on the U.S. in history. The Japanese bombed the harbor in their attempt to take down the American Pacific fleet. Six Japanese carriers launched 183 planes at Ford Island, following with a fleet of 170 planes at Pearl Harbor. Unwarned the United State’s Navy had no idea it was coming. Nine ships were completely sunk, along with 21 damaged.

Over the years to come, Hawaii’s importance as a naval and military center had no equal anywhere in the world. It was the site of the greatest naval base, as well as supplied to and was the training center for Army forces that faced the hardest fighting job in military history. Hawaii now has one air force base, three army posts (one of which is a medical center), two coast guard bases, one marine base, two navy bases, and two military resorts.

Service members Opportunity Colleges
These colleges enable military members as well as their families to get college degrees through a group of over 1,200 different colleges, and universities; that allow members to transfer credits between each. This makes it possible for members and their families who are continually relocating to get a degree. These schools offer many different plans including: two-year, four-year, and graduate-level programs.

Tuition Assistance
Tuition Assistance provides service members with the opportunity to enroll in courses at accredited colleges, universities, high schools, as well as technical schools. To qualify, there are a few requirements; you must have a minimum time remaining on your service contract and a cap on credit hours per year.

Testing Programs
Military administers over 150,000 academic exams to service members each year, which include: College Level Equivalency Program (CLEP) General Exams, CLEP Subject Exams, DANTES Subject Standardized Test (DSST), and Regents College Exams.  The College Level Equivalency Program allows you to receive up to 30 hours of college credit by passing one of these exams. There are five different types of exams that they offer: English, Social Sciences and History, Mathematics, Natural Science, and Humanities. Each gauges the knowledge that you would acquire in your first two years of college.  CLEP Subject Exams allow you to receive three hours of college credit, though six or 12 hours for every exam that you pass. The DSST program is a series of exams in 35 college subjects that complement the CLEP Subject Exams, and passing is very similar, in that you also get three hours of college credit. The Regents College is a “virtual university” that counts 30,000 military personnel as well as the 80,000 individuals worldwide that have graduated from it. This program offers eight different degrees to military personnel. There are 38 Regents College exams available, and over 900 colleges and universities that accept Regents college exams for credit.

Military School Credits
Service members can earn up to four semester hours of college credit, by completing the Initial Entry Training. So, while doing the required training, they are also getting credits towards a degree at the same time. The advanced job training the Military gives you, which is called “A School” also counts for college credit.

Certification Programs
Certification testing is available in the automotive, computing, electronics, management, broadcast engineering, emergency medical technician, medical technology, and food preparation fields, as well as many others.

Montgomery GI Bill
The Montgomery GI Bill allows members to get up to $37,224 for college if serving on active duty and up to $10,692 if you serve part time in the Reserve or in the National Guard. The MGIB program provides up to 36 months of education benefits, which can be used for degree and certificate programs, flight training, apprenticeship/on-the-job training, and correspondence courses. Benefits are usually payable for 10 years following release from active duty, date of program eligibility, or date of severance from the Reserves/National Guard.

College Fund Programs
In the Marine Corps/Coast Guard, college fund grantees can be up to $30,000 if combined with the GI Bill. College fund awards are competitive, so decisions are made on the basis of academic merit.

Community College of the Air Force
An accredited two-year college open only to those that have served in the U.S. Air Force, offering more than 70 different associate degree programs. Some of the programs that they offer include: Computer Science Technology, Aircraft Systems Maintenance Technology, Space Operations Technology, Allied Health Services, Paralegal, and Information Management. Every CCAF degree requires courses in your technical job specialty, leadership/management/military studies, general education, and physical education.

The army can also help pay for a soldier’s tuition. They allow up to $4,500 each year, as long as the cost for each course isn’t more than $250 per credit. There are a number of programs the Army has to assist in paying for your schooling. These programs include the following: the Montgomery GI Bill (MGIB) and Army College Fund (ACF), Post 9/11 GI Bill, Reserve Officers’ Training Corps (ROTC) Scholarship, and the College Loan Repayment program.

The Montgomery GI Bill & Army College Fund allows a total of $83,448 to help pay for the cost of college—that’s a lot of money! You can qualify by giving—during your first year while being in the army–$100 each month.  There is also a Reserve Montgomery GI Bill you can be eligible for by being in a certain army skill position in the reserves. If you are selected you can get $11,988 to help pay for your schooling.

The Post 9/11 GI Bill is next.  This can benefit not just the soldier, but can be transferred to the spouse or children. If the soldier was on active duty after 9/11 for a minimum of 3 months then the army will pay 3 years of fees, tuition, books, supplies, and a monthly living stipend.

Another program the army does is the ROTC Scholarship. This provides tuition fully paid for and money for books. This yearly amount can be a total of $5,000 for soldiers on over 700 campuses.

And finally, a way for a soldier to have the army help pay off student loans is called the Army College Loan Repayment program. Those benefited must be on active duty for at least 3 years and get receive $65,000.  For those who are in the Army Reserve, they must serve there for 6 years to get as much as $40,000.

As you can see, the Army has many different ways to help a person pay for their education. It has helped get numerous soldiers get their degrees that otherwise wouldn’t have had that opportunity.

North Carolina beaches are very popular places to visit. If you are looking for more of a “family beach,” Topsail Island and Surf City are great places to start—they have nice places to dine with the family! The Wrightsville beach is the best option if you are looking for entertainment and shopping, while still have access to the beach. What if you like culture and history ?! Do it along the North Carolina’s Outer Banks that stretch 130miles, where you can find lighthouses and all sorts of adventures. The Outer Banks have drawn explorers for over 400 years where the first manned flight at Kitty Hawk took place and where colonist have disappeared on Roanoke Island.

Let’s move along to the beautiful mountains of North Carolina for those who love hiking, camping, fishing, horseback riding, and enjoying the outdoors. The Great Smoky Mountains National Park is perfect for this, where 800 square miles have been preserved since 1934, with 700 miles of it having beautiful streams and rivers, 800 miles of trail to hike, and 2,000 acres of forest with plants and animals. It has been chosen as an international biosphere reserve and seen as the most biologically assorted spot on earth. Other mountainous places to experience are the Southern Mountains where you can have fun rafting the whitewater rapids or skiing during the winter; the Blue Ridge Mountains where about 20 million visitors come each year—it is the biggest attraction for the National Park Services; High Country and the Northern Mountains with more skiing and unique places to shop; the 88 miles of the Appalachian Trail; and finally, the Asheville and Central Mountains, which are known for their arts, history, and culture in the towns of Brevard, Flat Rock, and Hendersonville. Discover here the prehistoric forests and magnificent waterfalls!

As mentioned previously, North Carolina has numerous fun things to do during the winter months! It has the highest ski areas and biggest tubing resort in the eastern United States, as well as sledding parks, ice skating, and frozen waterfall climbing. The Hawksnest Snow Tubing and Zipline Course has the longest zip line in the country, which is 1.5 miles!

Other must-see attractions are the King Dominion amusement park, Wilmington’s USS Battleships, North Carolina Arboretum, Pack Place Education, Arts, & Science Center, Cherokee Heritage Center and Museum of the Cherokee Indian, the Folk Art Center, and the Flat Rock Playhouse: State Theatre of North Carolina.

If you are a veteran that loves the mountains, coast lines, museums, entertainment, winter sports, culture and history, or whatever it may be, you can find it all right in North Carolina making it the perfect place to buy a home using a North Carolina VA loan!

The Best Places database asserts that of the top 25 Fastest Job Growth counties, Florida takes 5 of those slots, all of which have grown by more that 50% since 2000. These following counties are Lake County, St Johns County, Pasco County, Hernando County, and Lee County. They also show Ponte Verda, FL among some of the highest median incomes for families, earning $116,399. What if you are looking for a place with quick travel time to work? Commuting in Marathon, FL is also on the top list at 10.3 minutes of travel time to work. And finally, another fun little fact is that the median age of people living in Florida is 27.9.

Florida also offers a number of other veteran benefits. The following are a list of several of these benefits, but keep in mind some may have certain qualifications one must fit in order to participate. They are: favor in employment and retention, homestead exemption of $5,000 from property tax, Florida VA loans, veterans who weren’t able to get a High School Diploma due to service—depending on the time—can receive their Diploma, tuition deferment, scholarships to the children of a disabled or deceased veteran, Identification Card to a disabled veteran, a hunting and fishing license at no cost, military license plates for a vehicle, permits and fees for parking/too paid for, and no fee for issuance of a Commission as a Notary Public. Florida also has Homeless Veteran Programs and Benefits Counseling for veterans.

As you can see, Florida has a wide range of great reasons why a veteran would want to buy a home in Florida using a Florida VA loan!

1. With every VA purchase loan, there is a pest inspection that is required. This is routine, but can become frustrating to home buyers trying to purchase a home if something goes wrong with the inspection; although, this could also be a good thing because it makes borrower aware of any problems that there may be, before purchasing the home.
2. If the property has a different source for main water, other than what is commonly used (i.e. a well for main source of water for home), they will be required to have an inspection on water, to insure that it safe, and meets local requirements.
3. The loan also requires a full VA-approved appraisal inspection, which tend to be more stringent than normal conventional appraisals, and are to be completed by a VA-certified appraiser.
4. There is a required residual income test that is performed when determining eligibility, to determine borrowers’ discretionary cash left at the end of every month; requirements can vary by region.
5. Another important requirement for eligibility is based on honorable military discharge, without it you will not qualify for the VA loan entitlement.

The monthly mortgage payment includes an amount for property tax and insurance on top of what an individual pays in principle and interest on their home loan. The mortgage company pays the taxes and insurance premiums from the escrow account. The mortgage company also examines any changes in cost and reexamines the escrow amount accordingly. The borrower should receive a yearly statement on their escrow account. The amount put into your escrow amount each month depends on the cost of taxes and insurance annually.

Here is an example of how monthly escrow accounts are calculated if your annual real estate tax is $2,400 and your annual property insurance is $1,200:

$2,400 divided by 12 months equal $200 per month.

$1,200 divided by 12 months equal $100 per month.

Total amount of taxes and insurance each month is $300.

This amount would be added to the principle and interest of your loan. The funds in the escrow account will collect until taxes and insurance are due.

There are many advantages to having an escrow account. An escrow account helps an individual to manage their funds. Instead of having to pay a lump sum of money, payment is made through monthly payments. It is much easier for most people to pay $200 per month into a forced savings account instead of paying $2400 at once. An escrow account is also useful because an individual does not have to worry about remembering to pay their taxes and insurance. The mortgage company does it for them. Also an individual’s taxes and home insurance will be paid on time which prevents late fees or cancellation of their policy. Your payments have already been budgeted for you and the money is waiting and available in your account. When the bill is due, the escrow account takes care of everything for you. It is nice not to have to remember payment dates and amounts. Escrow accounts are also required for North Carolina VA loan, Georgia VA Loan, pretty much all VA loans, and FHA loans as added protection for the lender.

I am also grateful for our Veterans of the Armed Services and the years that they have served their country. America is a free country today because of the men and women who have risked their lives to keep it that way. I am also grateful for the men and women who have given their lives to help make the world a better place. They deserve our respect and gratitude.

So my Christmas wish this year is for the safe return of our military personnel throughout the world and their continued success. Our hearts and prayers are with you and your families.