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Article: VA fee can be cut with big down payment
- Article from:
- Chicago Sun-Times
- Article date:
- April 27, 1990
- Author:
CopyrightCopyright (null) Chicago Sun-Times. (Hide copyright information)
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It's hard to think of a greater bargain than the no-down-payment
VA mortage, but the Veterans Administration has come up with one.
It's a VA mortgage with a down payment.
The VA charges a 1.25 percent funding fee for its mortgages.
That money goes into a revolving fund that guarantees VA loans and
pays them off when a mortgagee defaults.
In a new wrinkle this year, the 1.25 percent fee drops to 0.75
percent if you make a 5 percent down payment, and to 0.5 percent if
you can make a 10 percent down payment, said James Kimble, chief of
loan processing for the VA in Illinois.
If you're getting a $100,000 mortgage, you'd save $500 with a 5
percent down payment, and $750 with a 10 ...