# VA loan payoff- an all around good thing?



## Nathan (Jul 11, 2022)

I recently got a letter from VA/Calvet cancelling my _whatever_ policy since I just turned 70.  Live insurance that pays off the loan if I die, I believe.  
I've got more than enough to pay off the loan, just sitting in a saving account drawing  .15% interest, while the house loan is 4.99%.
I'm not seeing any "downside" to paying off the loan.    I carry my own homeowner's policy, and a separate earthquake policy as well...hey, it's California baby!


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## Patricia (Jul 11, 2022)

Nathan said:


> I recently got a letter from VA/Calvet cancelling my _whatever_ policy since I just turned 70.  Live insurance that pays off the loan if I die, I believe.
> I've got more than enough to pay off the loan, just sitting in a saving account drawing  .15% interest, while the house loan is 4.99%.
> I'm not seeing any "downside" to paying off the loan.    I carry my own homeowner's policy, and a separate earthquake policy as well...hey, it's California baby!


Homeowner insurance is due here, and so expensive due to hurricanes. The same due to earthquakes, I guess.


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## Tish (Jul 11, 2022)

Over here at the moment, House insurance is going through the roof, due to all the floods we have had.


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## Don M. (Jul 11, 2022)

Priority Number One when retiring is, IMO, to be Debt Free.  Being saddled with a mortgage, auto loan, credit card debt., etc., just adds stress to everyday life...at a time when a person should be able to live a relaxed lifestyle.


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## Aunt Bea (Jul 11, 2022)

It may be canceling the original VA loan guarantee to the lender now that there is substantial equity in the home.

I agree with Don, it's more about peace of mind than dollars and cents.

If you don't want to deplete your cash on hand make an additional principal payment each month that will allow you to pay it off in a year or two.


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## Nathan (Jul 11, 2022)

I called Calvet, they are going to email me a payoff amount.   I've got plenty of available funds that are just earning practically nothing.  I just need to review all the insurance policies related to this property to make sure everything is covered.   I don't have flood insurance, it would be a _rainy day in hell_ before we got anywhere near enough rain to worry about around here.  Got Homeowners and Earthquake insurance, not sure but I might have to add a fire insurance policy, unless Homeowners covers it.  
I've been toying with the idea of having Solar installed, will look for deals/ financing etc.


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## OneEyedDiva (Jul 13, 2022)

Nathan said:


> I called Calvet, they are going to email me a payoff amount.   I've got plenty of available funds that are just earning practically nothing.  I just need to review all the insurance policies related to this property to make sure everything is covered.   I don't have flood insurance, it would be a _rainy day in hell_ before we got anywhere near enough rain to worry about around here.  Got Homeowners and Earthquake insurance, not sure but I might have to add a fire insurance policy, unless Homeowners covers it.
> I've been toying with the idea of having Solar installed, will look for deals/ financing etc.


As long as you have enough to pay it off and still have an adequate emergency fund, I say go for it. Mortgage free will feel real good. If your emergency fund falls short, I like @Aunt Bea's idea. Of course you can adjust the numbers (and/or payments) however is most beneficial to your bottom line.


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## ArnoldC (Aug 16, 2022)

Paid the house off in 2016.  Went through a thought process similar to yours, _Nathan_.  Only downside if there is one is being sure to budget for annual homeowners' insurance renewal and property tax payments.  You're already covering the homeowners, _Nathan_.  You're good there.

Property Tax here in Texas freezes above age 65.  That helps and Texas sends out tax projections six months in advance of due date making budgeting less difficult.  Once I checked off the block on self-payment rather than mortgaging company payment statements come direct to the mailbox.

One thing I've not followed up on is if my VA loan approval remains valid for another purchase or if I'll have to go through the process all over again should I need or want another VA loan.

Hope this helps.  Regards.  _Arnold_


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