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.

Can you go to College Without Massive Debt?

We’ve all watched the news and read the stories. College is just becoming too expensive. Our country has a student loan debt problem.

And because of the stranglehold of student loan debt many young adults can’t take the next steps to adulthood like buying a house, or even a newer car. Many are putting off marriage because of the debt. None of this is good for our future.

But is there anything we can do about it? Is it just the fault of the college that is raising tuition each year or maybe the federal government that guarantees these massive loans? Can you really go through college without acquiring debt?

Yes.

That is actually the answer to each of those questions. And if you follow these steps and are willing to sacrifice some of the “college experience,” your college experience won’t saddle you with debt for the next decade or two.

Is a Four-Year College Right for You?

In our country, there is a push in elementary and secondary schools to put everyone on track for college. And unfortunately, many young adults go to college for a year or two (maybe more), don’t receive a diploma and only have student loans to show. And they are essentially back at square one as they were when they graduated high school (but with debt).

So, while it isn’t the popular thing to say, college might not be for you. Maybe there is a trade you could excel at simply by going to community college for a year and receiving an industry certification. And you’ll probably walk out with a good-paying job. And that year of community college could likely be bankrolled fairly easily without going into debt. Many high schools even offer programs to receive certifications. Do some research and see what options are available around you.

Don’t Choose the Most Expensive School

We often think that to land our dream job we need to go to a prestigious school that comes with a price tag that matches. For the most part, that isn’t true.

You can start at a local community college and often attend for next to nothing. In many instances, your local municipality or county will cover the cost of tuition at community college. And because it is “local,” you can live at home and save money. I know it’s not the dream of every 18-year-old to live at home, but it’s better to live at home while you are in college than after you’ve been out of college for a few years. Do it now and save. You’ll be happy you did.

And then when you complete your time at community college, look at state universities to complete your degree. They will generally be a much cheaper alternative while getting you the degree you need.

Look for Scholarships

Starting your senior year of high school, begin applying for scholarships. There are literally thousands of scholarships out there with multiple websites that will sort them for you. Apply. Apply. Apply. And for good measure, apply some more.

You will miss most that you apply for, but it will be worth it for those scholarships you do receive. Look at it this way, if you spent 500 hours applying for scholarships and received $25,000- you just made $50 an hour. And paid for a year or two at an in-state school.

Work While You are in College

No, you are not too busy to work while you are in college. (Yes, there are certain fields where you can’t work, but for most people that does not include them.)

And don’t just settle for a minimum wage fast-food job. Think like an entrepreneur. Cut grass. Babysit. Tutor. Walk dogs. Drive for Uber. Start a blog about how you are going to college debt free. Be a resident advisor and get free room and board. Just be creative.

Think About Your Major

Finally, what are you studying? What application does it have for the real world? This isn’t meant to discourage you from majoring in art history or theater or anything in liberal arts, but what are you going to do with that degree? What career will you have because you received that degree?

Money doesn’t need to be everything. You need to do what you have a passion for. But you also need to make a living. There are a lot of actors in Los Angeles who make a living waiting tables. That’s okay. But you need to have realistic expectations for when you do enter the real world.

College is a fun time. But it could also be a fun time without leaving with piles of debt. By approaching college like a business and being okay with being a little weird, you can leave with a degree that has prepared you for your career, all while being debt free.

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