Category Archives: Personal Finance

How Can I Calculate My VA Jumbo Loan Down Payment & Interest Rate

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Many people, particularly veterans, wonder nowadays about a VA JUMBO loan. Let me tell you that this loan type is more than the conforming limit of Fannie Mae loan, which is $453,100. However, like every other loan, this loan type too comes with limits, which are set as per the county. In some counties, such as the Orange County, CA, the maximum value of the VA loan can even go up till $1,094,625.

There are many types of VA loans, amongst which one is VA jumbo loans. The main attractive point of VA home loans is that they do not necessitate a down payment. Nonetheless, in case a borrower wants to put down some money, they have the option to do so as well. However, the guidelines pertaining to VA jumbo loans are quite complicated and detailed as opposed to the regular Fannie Mae VA loan, which is below $453,100.

VA jumbo loan requirements

When it comes to a VA jumbo loan, there are some requirements that applicants need to follow. These include:

  • You must have liquid asset reserves or cash reserves
  • You must have an attuned credit vetting procedure

Fees on VA jumbo loans

Just like other VA loans, VA jumbo loans have funding fees of 2.15% (for the first time) of the purchase price or loan amount, which you can finance in the loan itself. For instance, if you require a loan worth $600,000, then the funding fees would equate $12,900. This means that the total loan would be of $612,900. However, you must note that the funding fees on VA loans can differ as per the disability status and the number of times you make use of the VA loan.

Calculating your VA jumbo loan payments

You can make use of a VA jumbo loan in order to purchase a huge property. However, you still have to do some calculation before you go for it so that you can know about your VA jumbo loan down payment and interest rates. Here, you must remember that the VA guarantees a maximum of 25% of the total limit of $453,100.

So, let us explain to you how you can calculate your VA jumbo loan down payment and interest rates with an example. If you want to buy a home worth $500,000, you need to bring in 25% of the amount on top of $453,100. This means you need to get 25% of 46,900 ($500,000 minus $453,100), which is $11,725.

This gives you a down payment of 2.30% from the borrower, which is very much less than a traditional loan. In a conventional jumbo loan, you need to pay a minimum of 10% down payment, in addition to private mortgage insurance, which substantially increases the monthly payment and cash from the veteran.

Get the right VA jumbo loan

There are a lot of VA loan lenders in the market, which is why you need to search for the one that fits you the best according to your needs and preferences. Different VA loan lenders put different prices on their VA jumbo loans. Moreover, interest rates can be somewhat higher than others.

Nevertheless, even if the interest rates on VA home loans are high, they’re very much lesser than a traditional jumbo mortgage, which requires a down payment of 10%. Therefore, it’s advised that you do your homework and get the best VA jumbo loan for yourself from a reputed VA mortgage firm.

If you’re the one who is shopping for high-end houses and want to benefit from a VA home loan, then this undiscovered loan program is actually matchless for veterans with higher income who want to put a lesser amount of down payment on their h

Uber: a Job, a Side Gig, or Not Worth Your Time?

Not long ago, I enjoyed an Uber ride with a young woman who had worked her way out of a homeless shelter by driving for Uber. She is just one of several Uber drivers who shared their success stories with me. Thus, when I found myself wanting to knock out a few bills, I signed up to be a driver.

Requirements and Signing Up

  • Be 21 years old with one year of driving experience (three years if under age 23).
  • Have a current United States driver’s license.
  • Have an eligible four-door vehicle that is less than ten years old.
  • Have proof of insurance.

After uploading the necessary documents, I was approved within hours. I downloaded the Uber app and hit the road. Two hours later and $25 richer, I cashed out and the money arrived in my bank account within minutes. “Wow,” I thought, “this is great, $12.50 an hour off peak, and I make my own schedule.” Immediately, I began envisioning my debts wiped out. No doubt, many folks have the same thoughts during their first days driving for Uber. Of course, it’s always smart to talk to family lawyers Sydney before agreeing to any terms and conditions to be safe.

Consider The Costs

When making a mental list of the bills you’ll pay with your Uber money, make a mental list of the bills you’re running up as an Uber driver.

  • Gas
  • Car washes
  • Rideshare insurance
    • Check your state’s ridesharing regulations, and check with your insurance company to see if your policy covers driving for Uber, most personal policies don’t. So, unless you buy a rideshare policy, sometimes injuries to you and/or damage to your vehicle aren’t covered. You can risk driving without letting your insurer know but for me, when driving, safe trumps lucky.
  • Vehicle maintenance
    • After just two weeks of driving, my car hit its scheduled 45k maintenance, which came with a $220 price tag.
  • Vehicle depreciation
    • During a six-hour day, I drove about 200 miles. Driving three days a week, that’s 3k miles in five weeks, 30k miles (600 miles a week x 50 weeks) in a little less than a year.

Uber emphasizes the pros of being a driver, and they do exist:

  • You make your own schedule.
  • You get paid quickly
  • If you deduct mileage rather than actual expenses when doing your taxes, a good portion of your earnings won’t be taxable.

Is Driving for Uber Worth Your Time?

For me, no. I don’t want to put double or triple the normal number of miles on a fairly new car. Also, I made a lot of short hops. Driving without a passenger to pick up a five-dollar fare doesn’t make sense and longer fares don’t make up the difference.

As a side gig to pay down a few bills? May make sense for someone with an older, already depreciated car, particularly if that person can service it. A few weeks of quick cash flow can knock out small debts in a hurry.

Quit a day job to drive Uber? For me, not a chance. The freedom doesn’t outweigh the costs and risks. Driving for Uber doesn’t build a business that grows over time. Instead, you rapidly depreciate a high value asset (your vehicle), and probably aren’t putting away money to replace it. In addition, you aren’t gaining valuable work skills. And don’t forget, you’re responsible for your health insurance and you don’t get paid if you’re sick, or if your vehicle is in the shop.

Bottom line: If you need some quick cash, Uber may be a good short-term solution but long-term the only pockets it’s lining are those of venture capitalists and the company’s founders.

Things to Consider When Booking a Vacation

Everyone looks forward to getting away and planning the perfect vacation. Each family views different types of vacations as ideal. You can plan a beach getaway, a trip to the spa, disney world, camping, sightseeing, or hiking adventure. No matter what type of vacation you will need to put in a lot of time planning and money  to make sure it is perfect. Below are a few things to consider when booking and planning your next vacation.

Type

As explained above, there are many types of vacations. Your first step is to decide what you are looking for. Are you going on a couples getaway or a family vacation? Each has different needs. You also need to decide if you are looking for quiet and relaxing or action packed and invigorating. Make these decisions up front so it can lead the way to your next steps in planning.

Travel Agent

Once you decide the direction you want to go, you can decide how to plan. Your first option is to plan it all yourself. You will need to do the research yourself and be sure what is the best idea for your particular trip. There are a lot of websites out there to help you plan your vacation on your own. You can also hire help by using a travel agent. The travel agent is usually an expert in the type of vacation you are planning which takes the responsibility off of you. You basically trust them to do the research and planning for you. Some travel agents charge a fee and some do not. It is personal preference to which direction you take to planning your vacation.

Accommodations

When traveling you need to decide where you will be staying. The options are endless. You could stay with someone you know, a hotel, camping, bed and breakfast, etc. ONce again, all of this is personal preference but something you need to research and decide.

Transportation

How are you going to get to your vacation destination? Is it driveable? Do you need to book a flight? Can you take a train, bus or subway? This item and your accommodations are typically the most expensive part of your trip so it is best to do your research. With flights you can research when the best time to purchase is so you can save some money. You can also look for coupons and other ways of savings.

Insurance

When booking a vacation you can decide to get trip insurance. Since vacations usually cost a pretty penny you can buy insurance to ensure you don’t lose any of that money if the unpredictable occurs. Your travel insurance plans can depend on what coverage you are looking for. You can get coverage on such things as weather, terrorism, death, work conflicts, etc. You can also get coverage to cover your baggage in the even they are lost. You can even cover yourself for medical expenses and pre existing medical conditions if that is an area you are worried about.

Planning a vacation can be stressful, but if you walk through the above steps you can tackle the planning process piece by piece and get to experience the vacation of your dreams.