Veterans (beware); pay attention now!

By
Mortgage and Lending with Fairway Independent Mortgage Company 385907

I keep seeing these ads encouraging Veterans to use their entitlement to refinance their homes (up to 100%) to;

 

take out $$$

payoff credit cards

consolidate bills

 

Let me make this pure and simple.  If you must than this could be a good way to use your benefit, but on the surface this may not be a very good idea.

 

first in doing so, the Veteran may be taking all of their equity from the home, and limiting their ability to do anything, including selling the home in the near future if the need arises, or if they choose to do so.

second, refinancing is not necessarily an inexpensive way to borrow money. While the total payment may be low, the total cost; that being closing costs and the interest paid on the money borrowed is not. Also, the Veteran would need to make a commitment not to use the credit cards, and/or acquire more debt.

Finally, and in conclusion, the advertisements make it sound waaaaay to easy, and do not point out the drawbacks of such actions. We recently went through a period of time where people used their homes as their bank, and lived lifestyles they really couldn't afford, and it came back (in many cases) to bite them.

Hard.

So, if you must, okay...but please give this some serious thought before acting.  

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Jay Beckingham

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