Finance Friday: How to benefit from historically low mortgage rates - We Are The Mighty
MIGHTY MONEY

Finance Friday: How to benefit from historically low mortgage rates

You might be living under a rock if you haven’t heard about the 10 Year treasury at an all-time low and the federal reserve cutting interest rates. Or, far more likely, you’re just not a numbers and data nerd like me with a vested interest in all things finance. Luckily, if you’re a prospect or existing homeowner, one thing is certain, and that’s a win for you in this economic time. Breaking this further down into how it applies to your earned VA Home Loan benefit, there are two subsections that need to be explored: purchase and refinances.


Finance Friday: How to benefit from historically low mortgage rates

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New home purchases

What these amazing low rates mean for you is more purchasing power. For example, a 0,000 30-year home loan at 4.5% is a whopping 1 MORE every single month than it would be at 3.5% (,000 over the full lifespan of the loan). An alternate way to look at this is that you can purchase a 0,000 at the 3.5% rate for the same monthly cost as a 0,000 loan at 4.5%. That’s an increase in ,000 upfront purchasing power for the SAME MONTHLY COST. If that doesn’t scream raining money to you, I don’t know what can.

Refinances

If you already have a VA home loan and just had some sort of feelings about missing out on this amazing opportunity, the good news is you can still capitalize on this opportunity through a VA Interest Rate Reduction Refinance Loan (IRRRL, also known as a streamline refi). Just like anything else, there are myths floating around out there, and you know I’m going to break through them.

You do not have to be currently living in the home you wish to refinance. If you have a home that was once your primary residence, which is the only kind of loan the VA writes, then you qualify for a VA IRRRL (but NOT a cash out refi and NOT switching from conventional to VA when it’s not owner-occupied). It really is that simple. Easy peasy!

If you’re looking at a transition but living in the home right now, you are NOT obligated to extend your plans to live in the home for any certain period of time. Just like any VA loan, there are absolutely no minimum residency requirements.

Finance Friday: How to benefit from historically low mortgage rates

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A refinance is exponentially easier than a purchase transaction. No appraisal or inspection is required for a streamline refi. You DO need to be able to prove an ability to repay, so employment verification is required. Lower documentation requirements all around make for an easier process, however. Bank statements, pay stubs, proof of homeowners insurance and a current mortgage statement are what you can expect your lender to ask for.

Expectation management is important. Expect a slower closing turn time than your traditional 30-day purchase loans. It is not a sign of incompetence on the lender’s behalf, it is simply a prioritization. When compared to a purchase contract that is tied to multiple parties for timelines to move, the urgency for a refi comes secondary. No one’s earnest money deposit and moving schedule is driving the need, and there is a lot more skin in the game on a purchase deal. Expect to see a 45-day rate lock on your refi and know that it’s nothing personal.

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9 incredibly successful companies founded by military veterans

It should be no surprise that skills learned in the military such as decision-making under pressure, organization, and leadership translate well to the corporate boardroom. And those skills tend to make a big difference, with companies led by former military officers tending to show better performance.


People like Fred Smith or Sam Walton have become household names for their business success. Lesser known is their service prior to the companies they founded.

Also read: 10 entertaining military podcasts you need to know about

After World War II, nearly 50% of veterans went the entrepreneurship route, though that number has substantially declined today. Still, there are currently around 3 million veteran-owned businesses.

Here are 9 companies started by military veterans.

1. RE/MAX, cofounded by Air Force veteran Dave Liniger

Finance Friday: How to benefit from historically low mortgage rates
RE/MAX

Prior to founding “Real Estate Maximums” — better known as RE/MAX— Dave Liniger served in the Air Force during the Vietnam War.

From 1965 to 1971, he served as an enlisted airman in Texas, Arizona, Vietnam, and Thailand, according to his LinkedIn.

“The military really gave me the chance to grow up. It was fun. I thought it was a fabulous place,” he told Airport Journals. “It also taught me self-discipline and a sense of responsibility.”

After he got out of the military, he started flipping houses for profit, and eventually got his real estate license. He cofounded RE/MAX with his wife Gail in 1973.

2. Sperry Shoes, founded by Navy veteran Paul A. Sperry

Finance Friday: How to benefit from historically low mortgage rates
Sperry

You can thank a former sailor in the US Naval Reserve for inventing the world’s first boat shoe.

In 1917, Sperry joined the Navy Reserve, though he didn’t stay in for very long. He was released from duty at the end of the year at the rank of Seaman First Class.

Still, his experience there and further adventures sailing led to the founding of his company, which eventually created the first non-slip boating shoe. He founded Sperry in 1935.

During World War II, his Sperry Top-Sider shoes were purchased by the boatload by the Navy. Now nearly a century later, they are still a favorite of sailors everywhere.

3. FedEx, founded by Marine Corps veteran Fred Smith

Back before FedEx was the behemoth logistics company it is today, founder Fred Smith was observing how the military was getting things from point A to point B.

After graduating from Yale University, he was commissioned as a Marine Corps officer and served two tours in Vietnam. He earned a Bronze Star, Silver Star, and two Purple Hearts,according to US News.

Only two years after he left the Corps, he started Federal Express.

“Much of our success reflects what I learned as a Marine,” he wrote forMilitary.com. “The basic principles of leading people are the bedrock of the Corps. I can still recite them from memory, and they are firmly embedded in the FedEx culture.”

4. Walmart, cofounded by Army veteran Sam Walton

WalMart is the largest company in the world.

It was founded by a former Army intelligence officer named Sam Walton.From 1942 to 1945, Walton was in the Army and eventually rose to the rank of captain. His brother (and cofounder) Bud served as a bomber pilot for the Navy in the Pacific.

According to the company’s history, Sam Walton’s first WalMart store, called Walton’s Five and Dime, was started with $5,000 he saved from his time serving in the Army and a $25,000 loan from his father-in-law.

5. GoDaddy, founded by Marine Corps veteran Bob Parsons

Finance Friday: How to benefit from historically low mortgage rates
Creative Commons

The company responsible for registering a large portion of the world’s web domains, GoDaddy, is the brainchild of Marine veteran Bob Parsons.

Parsons enlisted in the Corps in 1968 and later served in Vietnam, where he earned a Combat Action Ribbbon, the Vietnamese Cross of Gallantry, and the Purple Heart for wounds he received in combat.

“I absolutely would not be where I am today without the experiences I had in the Marine Corps,” he writes on his website.

In 1997, he started GoDaddy. In 2014, it filed for a $100 million IPO. He left the company around that time to focus on his philanthropic efforts

6. WeWork, founded by Israeli Navy veteran Adam Neumann

Finance Friday: How to benefit from historically low mortgage rates
Adam Neumann | Adam Neumann

Hot coworking startup WeWork is the 9th most valuable startupin the world, and it was started by a veteran of the Israeli navy.

Adam Neumann started a coworking office space for entrepreneurs in New York City back in 2011.Today, WeWork has 128 offices in 39 cities around the world.

Born in Tel Aviv, Israel, Neumann served as a navy officer there for five years before moving to the US in 2001.

7. Taboola, founded by Israeli Army veteran Adam Singolda

Finance Friday: How to benefit from historically low mortgage rates
Taboola Founder and CEO Adam Singolda. | Taboola

Another veteran of the Israel Defense Forces is Adam Singolda, the founder of content recommendation engine Taboola.

Like many other successful Israeli entrepreneurs who served in the IDF (military service ismandatory in Israel), Singolda developed many of the skills that would help his company later on in the military intelligence field.

He ended up serving for seven years as an officer with the elite Unit 8200, the Israeli military’s version of the NSA.

He started Taboola back in 2007, and you have surely seen his work under the many millions of articles who feature “Content You May Like” that the company generates at the bottom. Taboola raised a round of financing in 2015 that put its value at close to $1 billion.

8. Kinder Morgan, cofounded by Army veteran Richard Kinder

The fourth largest energy company in North America was cofounded by Vietnam veteran Richard Kinder. Along with his business partner William Morgan, he started the company in 1997.

He earned his law degree at the University of Missouri before serving in Vietnam as a US Army captain. He was in uniform for four years as a Judge Advocate General officer (aka a military lawyer).

9. USAA, founded by a group of Army officers

Finance Friday: How to benefit from historically low mortgage rates
Flickr/Fort Rucker

It may not be a huge surprise that USAA — a company that exclusively caters to military veterans and their families — was started by veterans.

Interestingly though, it doesn’t have just one founder. It has 25.

Back in the 1920s, it was pretty hard for military service members to get (or keep) auto insurance, since it was either way too expensive or likely to get cancelled since they moved around so much.

So Maj. William Henry Garrison and 24 of his fellow Army officers got together in 1922 and formed their own mutual company to insure themselves, according to Encyclopedia.com. Today, the United Services Automobile Association provides insurance, banking, and investment services to nearly 12 million members.

Disclosure: I personally have USAA insurance and use its banking services.

MIGHTY MONEY

TRICARE beneficiaries have one month to transfer prescriptions

Finance Friday: How to benefit from historically low mortgage rates
TRICARE beneficiaries are encouraged to transfer their prescriptions to a military treatment facility.


TRICARE beneficiaries using CVS pharmacies have one month to transfer their prescriptions over to a network pharmacy, according to Express Scripts, TRICARE’s prescription service.

In September, TRICARE announced that CVS pharmacies were out and Walgreens was in. According to Military.com, Express Scripts will add 8,000 Walgreens stores to the network, and remove 9,600 CVS pharmacies.

The move, according to Express Scripts spokeswoman Jennifer Luddy, is “intended to provide better value to TRICARE” while preserving beneficiaries access to prescriptions.

Beneficiaries who utilize CVS for specialty prescriptions will also need to move their business, or risk paying full retail price. Express Scripts notes that beneficiaries with medications at the pharmacy should switch them to an in network specialty pharmacy, specifying Walmart, Rite-Aid, Kroger, and Walgreens on their website.

Walgreens had previously been an in-network pharmacy, but a disagreement about reimbursement rates led Walgreens to leave the network in 2011.

Express Scripts says that beneficiaries who find that they need to transfer their prescriptions to an in network pharmacy have a number of options:

  • Beneficiaries can take their medication bottles to the new pharmacy or call the new pharmacy and have it contact the old pharmacy to transfer the prescriptions.
  • Beneficiaries can ask their doctor or military treatment facility (MTF) to send their prescriptions to the new pharmacy.
  • Beneficiaries can check to see if their medications, including specialty prescriptions, are available for TRICARE Pharmacy Home Delivery.

Beneficiaries are also encouraged to have their prescriptions filled at an MTF at no cost.

Questions regarding this change can be directed at Express Scripts by contacting them at 855-778-1417.

MIGHTY MONEY

There is no one in NFL history more devoted to veterans than Jared Allen

During his 12-year NFL career, Jared Allen was a heavyweight defensive player, making his presence known on multiple teams, especially the Minnesota Vikings. It was as a Viking that Allen went on a trip that touched his heart and soul, touring with USO to visit servicemen and women deployed overseas. He even told the assembled troops as much.

That’s what led to Jared Allen’s Homes for Wounded Warriors (JAH4WW).


“It has been one of the best experiences of my life – something that I’ll never forget,” Allen said of his time visiting troops. “We, as players, probably get more out of it than you do as soldiers and Marines.” Even though his grandfather and younger brother were Marines, the experience changed Allen, inspiring him to create his own charity to support America’s wounded.

Even after he was traded to Chicago and later Carolina, Jared Allen’s Homes for Wounded Warriors carried on no matter where Allen was playing. Even though he’s listed as one of the 50 Greatest Minnesota Vikings of all time, the uniform he wore on the field wasn’t what defined him. If you ask the man himself, he’ll tell you what he does off the field is what matters most.

“Football is what I do, it’s not who I am. The things that we do today — to impact these lives, to change people’s lives — can last forever,” he told SB Nation. “We have a great responsibility to the community that supports us, and to our veterans who allow us to do what we do.”
Finance Friday: How to benefit from historically low mortgage rates

Former Vikings defensive end Jared Allen presents free Super Bowl LII tickets to eleven-year-old Tallon Kiminski, son of Minnesota Air National Guard member, Maj. Jodi Grayson.

(U.S. Air National Guard photos by Capt. Nathan T. Wallin)

When it comes to helping wounded veterans, Jared Allen is a godsend. On its website, the JAH4WW says, “Jared was moved by the commitment, dedication, and sacrifices that our soldiers make every day to protect our freedom. He wanted to say thank you to every soldier in the only way that Jared knows how. By embracing the conflict and making a positive life-changing difference in the lives of those who need it most, Jared and his JAH4WW will help make life for wounded vets just a little bit easier.”

Talk is big, but in practice, Jared Allen is much, much bigger than just words. Since its founding in 2009, his organization has helped raise funds to build or revamp homes for injured veterans of Iraq and Afghanistan, raised tens of thousands of dollars from corporations like Wal-Mart and Proctor Gamble to provide everyday household goods for veteran families in need, and on Veterans Day, you can always find the now-retired Allen doing something to help veterans in need.

Finance Friday: How to benefit from historically low mortgage rates

NFL player Larry Fitzgerald signs an autograph for troops from the Washington Army National Guard at Camp Ramadi, Iraq, along with Will Witherspoon from the St. Louis Rams, Jared Allen from the Minnesota Vikings, and Danny Clark from the New York Giants in 2009.

(U.S. Army photo by Staff Sgt. Emily Suhr)

“I knew I had to do something to serve our country,” Allen once said of the Jared Allen Homes for Wounded Warriors. “I feel the best way to do that is serve those who serve us.”

If you’re a veteran of the wars in Iraq or Afghanistan who is in need of housing or alterations to suit your disability, apply to Jared Allen Homes for Wounded Warriors on the organization’s website. Jared Allen is one guy you definitely want in your corner.

MIGHTY MONEY

5 GI Bill rates that will increase this year

The Department of Veterans Affairs has announced the Post-9/11 GI Bill rates for the 2019-2020 school year. These rates will be effective on Aug. 1, 2019. The Montgomery GI Bill and Dependents’ Education Assistance programs will see a rate change on Oct. 1, 2019.

By law, the GI Bill rate increase is tied to the average cost increase of undergraduate tuition in the U.S. For the 2019-2020 school year, that increase will average 3.4%.

More than 80 percent of those taking advantage of their GI Bill benefits are doing so through the Post-9/11 GI Bill.


Private & foreign school GI Bill rates

Effective Aug. 1, 2019, those using the Post-9/11 GI Bill at a private or foreign school will see their maximum yearly GI Bill rate increase from ,671.94 to ,476.79.

Flight training

Those who are enrolled in flight schools will see their annual maximum GI Bill benefit increase from ,526.81 to ,986.72.

Finance Friday: How to benefit from historically low mortgage rates

An F-22 Raptor from the Hawaii Air National Guard’s 199th Fighter Squadron returns to a training mission after refueling March 27, 2012, over the Pacific Ocean near the Hawaiian Islands.

(U.S. Air Force photo by Tech. Sgt. Michael Holzworth)

Licensing/certification/national testing

You can be reimbursed up to ,000 per test for licensing and certification tests. For national testing programs, there is no maximum amount of GI Bill reimbursement. Your entitlement will be charged one month for every ,042.06 spent; currently, that trigger point is id=”listicle-2634152786″,974.91.

Correspondence courses

You can be reimbursed the actual net costs, not to exceed ,888.70 annually. That’s up from ,497.78 currently.

Monthly housing allowance

The Monthly Housing Allowance is also scheduled to change on Aug. 1, 2019.

If you are attending classroom sessions, your housing allowance is based on the ZIP code of the campus location where you attend the majority of your classes.

If you are attending classes at a foreign school, not on a military base, your maximum housing allowance will be id=”listicle-2634152786″,789.00. This is prorated based on the length of your active-duty service and how many classes you are taking.

If you attend all your classes online, your maximum housing allowance will be 4.50. This is also prorated.

Keep up with your education benefits

Whether you need a guide on how to use your GI Bill, want to take advantage of tuition assistance and scholarships, or get the lowdown on education benefits available for your family, Military.com can help. Sign up for a free Military.com membership to have education tips and benefits updates delivered directly to your inbox.

This article originally appeared on Military.com. Follow @militarydotcom on Twitter.

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DoD extends online military exchange shopping privileges to veterans

The Department of Defense announced a policy change that will extend limited online military exchange shopping privileges to all honorably discharged veterans of the military.


The veterans online shopping benefit will be effective this Veterans Day, Nov. 11.

Also read: The VA is set to lower copays for prescriptions

While shopping privileges exclude the purchase of uniforms, alcohol and tobacco products, it includes the Exchange Services’ dynamic online retail environment known so well to service members and their families. This policy change follows careful analysis, coordination and strong public support.

“We are excited to provide these benefits to honorably discharged veterans to recognize their service and welcome them home to their military family,” said Peter Levine, performing the duties for the under secretary of defense for personnel and readiness.

“In addition, this initiative represents a low-risk, low-cost opportunity to help fund Morale, Welfare and Recreation programs in support of service members’ and their families’ quality of life. And it’s just the right thing to do,” Levine added.

The online benefit will also strengthen the exchanges’ online businesses to better serve current patrons. Inclusion of honorably discharged veterans would conservatively double the exchanges’ online presence, thereby improving the experience for all patrons through improved vendor terms, more competitive merchandise assortments, and improved efficiencies, according to DoD officials.

“As a nation, we are grateful for the contributions of our service members. Offering this lifetime online benefit is one small, tangible way the nation can say, ‘Thank you’ to those who served with honor,” Levine said.

NOW WATCH: Pentagon considers lifetime access to Exchange system for vets

Humor

24 people to marry with better benefits than a US service member

Recently, the military healthcare system Tricare posted a photo on its Facebook page that had its fans in a frenzy.


People got pissed; they complained; they shared the post with harsh words; some even used “caps lock” in their comments. It was terrible.

What was so offensive about the post, you ask? If you hadn’t already seen it, it was a wedding photo with the comment “You had me at #TRICARE.” See below.

Finance Friday: How to benefit from historically low mortgage rates
Tricare recently posted what was supposed to be a humorous post to its Facebook page. Instead, it got a lot of backlash!

As someone who works online almost exclusively, I had to laugh at the post. In fact, I laughed a lot. I could understand why some people were upset (hello, pushing a negative stereotype on female military spouses), but mostly I couldn’t understand how the marketing department at Tricare saw the post and said “Oh hey, THIS post is an EXCELLENT idea!”

My first reaction when I saw it, honestly, was “I wonder how long whomever approved this post will have a job?” I post all kinds of crazy things on my own personal Facebook page, but I’ve been called into more than one come-to-Jesus meeting with a boss over a poorly planned social media post.

When that’s your job, you have to be aware of your audience.

And who is the audience for most of Tricare’s social media pages? Probably spouses who want to keep up with changes in Tricare benefits. So it’s no small wonder that a whole bunch of them were butthurt.

So I did what any responsible journalist in my position would do: I shared the flub on my personal Facebook page and asked for hilarious feedback. My friends did not disappoint.

The idea? If we were to marry someone for his benefits, couldn’t we have chosen someone with better perks?

The military benefits are great, don’t get me wrong. But what about if you married:

1. A mob boss

All the Italian food your heart desires and the destruction of your mortal enemies. (this is obviously my first choice)

2. Prince Harry

Crowns and gowns, you’d never have to work! (wait. maybe this is my first choice)

3. United State Senator or Representative

The best health care your tax dollars can buy. Plus no one’s allowed to hurt your feelings. (gag me now)

4. A doctor

All you can eat hospital food! (food? queue the fat dependa jokes, because I AM IN)

5. A dog breeder

Picks of the litter! (meh, I’m not really a puppy person. Don’t shoot me, I prefer a full-grown rescue)

6. Donald Trump

If you ever go bald or are in desperate need of a tanning bed, you’re already in the right place! (If you can stomach this, its an option for those of you under 25!)

7. Any president

Free food, vacations all over the world; top private schools for kids; secret service body guards; couple cabins in the woods; free airfare!! (Woah woah woah…. someone sign my husband up!)

8. A Masseuse

Happy massages for days. (Okay I’m really torn between this one and Prince Harry. Can we choose two?)

9. Bill Gates

When one door closes the windows are always open!! (I’m a Mac girl, so…)

10. A handyman

All the crap around the house might actually get done! (Except my daddy raised me to be able to DO all the crap around the house, so this isn’t an issue here.)

11. Cesar Milan (the dog whisperer)

Maybe he can make the kids behave! (Wait, I have to choose between behaving kids and Prince Harry? Adulting is hard.)

12. A plastic surgeon

Think this speaks for itself. (Meh, not really my cup of tea)

13. A Starbucks barista

I think this also speaks for itself. (Okay, so do you think Harry could make coffee AND be a mob boss AND be a masseuse? Someone with connections find this out for me?)

14. An airline Pilot

Get to travel for free or for little out-of-pocket when there are seats available. (I’m married to a pilot. I see how he drives, I DO NOT want to fly with him.)

15. A personal trainer and chef

Never have to cook again and always fit into your skinny jeans! (I already fit into my skinny jeans. I just buy them bigger now.)

16. A hotel manager

Free room and board with complimentary continental breakfast! (I do enjoy food…)

17. A mechanic

(Free oil changes?)

18. Matt Damon

He’s my fantasy celebrity boyfriend and I’m waiting for his proposal. (Obviously this wasn’t my suggestion. If it’s not obvious, I super like Prince Harry. Just saying.)

19. A farmer

Cheap help from laborers, tractors and back hoes to dig as many holes as I need to bury the bodies. Then, when the old man ain’t worth it anymore I just take him out to pasture on the back 40! (So maybe not husband material, but maybe as a side piece while I’m married to the mob boss? Questions need to be asked here.)

20. A coffee importer

I would always have the best coffee. Ooh or someone who owns a bookstore too! Unlimited coffee and books for life it can’t get any better than that. (Just out of curiosity, does anyone know if Prince Harry has a library? Asking for a friend.)

21. The owner of a winery

(Also need to find out how Harry feels about wine)

22. A civilian so you never have to sleep alone

…Or worry. (I know, too serious)

23. A Costco employee

I used to work at Aetna. Let me tell you — those folks get great insurance. Or they used to. Free glasses once a year for all members of the family. (It IS time for me to get new glasses.)

24. The heir to a million dollar business with really nice in laws

No wait.. better! Heir to an awesome chocolate company. (Note to self, find out how Prince Harry feels about wine and chocolate and masseuse school and libraries and…)

I just realized that Prince Harry is in the military as well, so maybe I just really appreciate a man in uniform and the benefits aren’t really even the icing on the cake.

MIGHTY MONEY

4 tips for buying your first car as a junior troop

Purchasing your first car is a minefield filled with predatory lenders and scams. Young troops, unfortunately, fall victim to these bloodsuckers every year because they do not know of the special offers and protections available to them. It’s exciting to be on the lot, test driving your potential steed, but knowing the pitfalls that lurk in those lots will save you and your wallet a lot of grief.

It’s your first car and having your finances accounted for will make it easier when the additional expenses of maintenance, insurance, gas, and registration come into play. You wouldn’t go into battle without ammunition and you should equally not venture onto a lot without knowing your credit score, pre-approval amount, and potential financial threats.

Here are 4 tips for identifying and preventing scams targeting you, a junior troop, as you shop for your first car.


Finance Friday: How to benefit from historically low mortgage rates

The “refusing pre-approved checks” scam

You found it. It’s the perfect car to take you from base to places where knife hands and regulation haircuts do not exist, but there is one problem: the dealer doesn’t want to accept your pre-approved check from your lender (bank). They may try to spin something along the lines of, “I don’t trust those, I’ve been scammed before.” They’re playing the victim; don’t believe them. Their next move will be to convince you to sign a financing agreement with them instead, effectively scamming you into a higher APR loan.

Walk off that lot and never look back. You don’t need that evil put on you, Ricky Bobby.

Finance Friday: How to benefit from historically low mortgage rates

The “you have bad credit” scam

As a young troop, you probably don’t have a credit history at all, which is a double-edged sword. The positive is that lenders will give you the benefit of the doubt. Why? Well, because of your service, you’re easy to find and collect from if you become delinquent on payments. So, if a dealer says you have bad credit when you know, for a fact, that you don’t, it’s another scam waiting to happen.

We’re willing to bet that the dealer will tell you your only option for approval is to finance through them at a ridiculously high rate. The solution here is the same as before — walk.

Finance Friday: How to benefit from historically low mortgage rates

The “buy here, pay here” financing scam

In this scam, the dealer will promise that you’re going to get a sweet APR if you finance through him, but the application process takes a few weeks. He’s a nice guy, though, so he’ll let you take the car home while everything finalizes. He’s trusting you, but then, once those weeks pass, he calls you with bad news: the loan was denied, and you’re forced to pay a much higher APR or lose that car.

The best defense against this scam is shop around for different lenders, get pre-approved, and don’t accept any unknowns. Do not let dealers talk you into something you’ll regret later. Not all “buy here, pay here” offers are scams, but why take the risk when the alternative is clear as day?

The “price is too good to be true” scam

There are advantages to buying directly from a person instead of a dealer, like a faster turnaround or a better deal. But keep your head on a swivel because you’ll also leave yourself open to other risks and scam artists. As always, if in doubt, bring a friend. With some information and a properly calibrated BS meter, a troop can venture into the unknown unafraid.

The ‘price is too good to be true’ is when a victim sees a car they want to purchase online and it’s priced well below market value. Usually, it’s a classic or an exotic car — something to entice the victim to overlook a few details. The scam artist states that they’re out of the country with the vehicle (for one reason or another), but they’ll ship the car to you — but only after they receive your payment. The scam artist will make it seem like they’re the one at risk.

Once the scammer receives your money, they will cease speaking to you and disappear. Surprise!

The lesson here? Always make purchases in person and be wary of wire transfers and money orders. And, as always, if it sounds too good to be true, it is.

If you feel like you have fallen victim or see a scam targeting your brothers-in-arms, you can report the car-buying scam at Fraud.org

Articles

This Marine just saved the government $15 million

The Marine Corps was paying $60,000 more than it was supposed to for a type of radio cable since 2007, according to Stars and Stripes.


The cable was discovered to be overpriced in October 2016, when Marine Cpl. Riki Clement had to fix a radio. After being told that the needed parts would take six to eight months to arrive, he decided to reverse engineer a replacement using old parts and found out its true cost was actually closer to $4,000.

Later that month, the Marine Corps said the corporal had saved the government $15 million.

Finance Friday: How to benefit from historically low mortgage rates
The cable that the Marine Corps was overpaying by $60,000. (U.S. Marine Corps photo)

The defense contractor that makes the cable, Astronics, had been charging $64,000 for each cable. Astronics did not immediately respond to request for comment.

“There may be a good reason for the price, but based on us taking apart the cable and researching the individual parts, we’ve found no reason for this part to cost as much as it does,” Clement told Stars and Stripes in December 2016.
The overpriced cable was one of six in the same parts catalog, Barb Hamby of Marine Corps Systems Command told Stripes.

“The catalogued mistakes were made nearly seven years ago,” Tony Reinhardt, the command’s team lead for automatic test systems, told Stripes. “We went through every [item] in the kit to confirm the prices and fix the errors.”

Reinhardt said the cable costs $4,000 because of the material that goes into it, as well as the process of designing, developing and manufacturing it. He added that there’s no record of the Marine Corps ever purchasing individual replacement cables. The originals were part of kits, and Marines had been using parts from other kits for repairs.

The cost of each kit was $21,466, Capt. Frank Allan, a project officer at Marine Corps Logistics Command, told Stripes.

This isn’t the first time the military has been caught overspending.

In December 2016, it was discovered that the Pentagon had buried a study from late 2015 exposing $125 billion in administrative waste. President Donald Trump has also attacked defense contractors for overpriced weapons, despite recently calling for a $54 billion boost in defense spending.

MIGHTY MONEY

Senior executive with Navy Federal Credit Union says now is the time to buy

In the midst of COVID-19, there is really good news for veteran and military home buyers: It is the perfect time to buy.

Kevin Parker is the Vice President of Field Mortgage Originations for Navy Federal Credit Union. Parker shared that now, more than ever, is the perfect time for veterans, service members and military families to buy. He explained that the market currently has great rates, no “junk” fees and experienced VA loan lenders ready to work for them.


Parker advises the new service member to do their research first though. “Talk to lenders early and become familiar with the company that funds them. Many who provide [originate] don’t service the loan. Navy Federal Credit Union services every one,” he said. Parker also shared that it is important to compare both the rates and the fees. He explained some lenders will even offer an estimate of fees before you apply, making it easier to understand the total costs associated with the home loan.

For many active duty military families, purchasing a home can be intimidating and even anxiety provoking. This can be attributed to the frequent moves associated with military life and the concern of being able to sell the home when it is time to PCS again. But Parker wants military families to be at ease when considering purchasing a home. “Historically, it is a good investment and can create investment power in terms of future income,” he explained.

He also suggested that military families work with Realty Plus through NFCU.

Realty plus is a program through NFCU that pairs you with a coordinator who then connects you to a real estate agent who is specifically trained to work with military families. This program also comes with a cash back offer if you close on your home with one of those agents.

Veterans or recently separated service members may have different ideas in mind for their home purchase. Many are looking at states which will be their retirement homestead. Parker suggests that they pay attention to the economy in general and seek areas with good value for their money.

Parker also said that finding an area with NFCU branches wouldn’t hurt either.

The NFCU website states that they aim to, “Be the most preferred and trusted financial institution serving the military and their families.” NFCU was Founded in 1933 and is the world’s largest credit union. When they opened their doors, they had seven members.

Now, they have over nine million members.

Membership is open to all Department of Defense, Coast Guard Active Duty, veterans, civilian and contractor personnel and their families. They pride themselves on their original charter being to the military community and for having over 40 years of experience in servicing loans. In fact, half of their loans are VA home loans.

Parker credits NFCU’s success to the company’s commitment to the culture of focusing on the families. The NFCU website also promises that, “Once a member, always a member. You can leave the military, change employers, move, retire, get married – yet always stay with Navy Federal. Your life is our mission.”

To learn more about Navy Federal Credit Union, click here. To see their current VA and Conventional Fixed Home Loan rates and decide if a mortgage with NFCU is right for you, click here.

MIGHTY MONEY

DoD denied benefits to a widow over one mistake

Joseph Parrinello served his country during three wars – World War II, Korea, and Vietnam. He met and married Margaret Donnelly while serving in England. They married on December 27, 1957. She followed him to all his assignments and did what many wives did at that time: she took care of the children and managed the household.


In 1972, Joseph retired after 28 years of service. His chief concern in life was making sure Margaret, who was 14 years younger than he and only ever worked in the home, was taken care of if he died. After a lifetime of investments, the Defense Department denied his beloved her survivor benefits because of one wrongly checked box.

 

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After many years together, they divorced in 1991. There was no love lost, Margaret married Joseph at 19 and had just never really known life without Joseph. He still loved her and she was still the mother of his children, so she remained the beneficiary of his Survivor Benefit Plan, even though they were no longer married. During their time apart, Joseph gave his beloved money every month to take care of her, even after the children came of age and left home. It was a surprise to no one when they remarried in 2006. Joseph was 83 and Margaret was 69.

By that time, Joseph had battled cancer and kidney failure. His overall health declined for years, but he never filed a disability claim with the Department of Veterans’ Affairs because he only wanted what he was due and felt the VA didn’t owe him anything. So he lived on Social Security and his retirement pay as an E-7 with 28 years in service.

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Throughout his retirement, Joseph paid 15 percent of his income to take care of Margaret. He had an allotment taken out of his retirement to cover her in the event of his death, resulting in several decades of investment. His survivor benefit plan listed her as the sole beneficiary. At 83, he was tired, ill, and not as sharp as he once was. He didn’t change Margaret’s status from “former spouse” back to “current spouse” on the SBP form because he didn’t think he had to. In his mind, his Margaret was both former and current, and was going to be okay.

When he died at age 91 in December 2014, his daughter Lisa, also an Air Force veteran, tried to help her mother claim her survivor benefits. They initially filed in December of 2014 – but the Defense Finance and Accounting Service said they didn’t receive Margaret’s claim, though DFAS was sure to stop Joseph’s retirement pay and take back pay for part of the month of December. So Margaret refiled in January and was told it takes about six weeks to receive benefits.

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Joseph Parrinello

After six weeks, Margaret called DFAS to check the status. The answer was the claim was “still processing”. When her daughter Lisa called in February 2015, the claim was “still processing.” In March 2015, Lisa was told her mother “will get paid by the end of March.” In April, the claim was “still processing” and DFAS asked Margaret to send more documents to support her claim.

Lisa, frustrated, contacted her congressman, Mark Sanford. Sanford’s office was able to get an answer from the Defense Department. On June 1, 2015, Margaret was officially denied her benefits because the form had “former spouse” checked even though she is both the former and current spouse and her name is also on the form stating her as beneficiary. The family was told the form needed to be changed through the Air Force Personnel Center. The change (if approved) can take up to 18 months but the Air Force is “backlogged and must go in order.”

As Margaret waits for the Air Force to check a different box, she’s about to lose the house she shared with Joseph, their car, their treasured possessions, and the last wishes and lifetime work of a 28-year Air Force Master Sergeant, who only wanted the love of his life to be taken care of when he died.

The Defense Department did not tell the Parrinellos where Joseph’s 20-plus years of investments went or where they will go if they’re not given to Margaret.

Articles

This is how much troops were paid in every major American war

Think it’s hard making it month to month in the barracks on just an E-1 pay? Well, the recruits who won America’s earlier wars had to make ends meet with much, much less to draw on. See how much troops made in each conflict, both in their own currency and adjusted for inflation:


Author’s note: The pay structure changed over time. From the Korean War to today, military pay has been relatively consistent across the services and the numbers listed in entries 8-11 reflect the financial realities of an E-1 enlisted servicemember. For earlier conflicts, pay was calculated using the salary of a first-year Army private or a junior infantryman.

1. Revolutionary War

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Painting: Battle of Trenton by Charles McBarron

Privates in 1776 earned $6 a month plus a bounty at the end of their service. That pay would equate to $157.58 today, a pretty cheap deal for the poor Continental Congress. Unfortunately for soldiers, Congress couldn’t always make ends meet and so troops often went without their meager pay.

2. War of 1812

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Andrew Jackson wins the Battle of New Orleans two weeks after the War of 1812 ended.

Pay started at $5 a month for privates but was raised to $8 at the end of 1812. This was in addition to bounties ranging from $31 and 160 acres of land to $124 and 320 acres of land.

That $8 translates to $136.28 in 2016. The bounties ranged from $528.10 to $2,112.40 for terms of five years to the duration of the war.

3. Mexican-American War

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Storming of Monterey in September 1846 during the Mexican-American War. Image date: ca. March 2, 1847.

Young infantrymen in their first year of service during the Mexican-American War pocketed $7 per month, according to this Army history. That’s $210.10 in 2016 dollars.

4. Civil War

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The Battle of Chickamauga raged from Sep. 19-20, 1863. Painting: Library of Congress

Union privates in 1863 brought home $13 a month which translates to $237.51 in modern dollars. Confederate privates had it a little worse at $11 a month. The Confederate situation got worse as the war went on since the Confederate States of America established their own currency and it saw rapid inflation as the war situation got worse and worse.

5. Spanish-American War

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An undated photo shows soldiers manning a battle signal corps station during the Spanish-American War. Photo: Naval History and Heritage Command

While Army private pay in the Spanish-American War was still $13 like it had been in the Civil War, a period of deflation had strengthened the purchasing power of that monthly salary. In 2016 dollars, it would be worth $356.26.

6. World War I

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Photo: National Archives and Records Administration

A private, private second class, or bugler in his first year of service in 1917 was entitled to $30 a month. In exchange for this salary, which would equate to $558.12 today, privates could expect to face the guns of the Germans and other Axis powers.

World War I was the first war where, in addition to their pay, soldiers could receive discounted life insurance as a benefit. The United States Government Life Insurance program was approved by Congress in 1917 and provided an alternative to commercial insurance which either did not pay out in deaths caused by war or charged extremely high premiums for the coverage.

7. World War II

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Photo: US Army

In 1944, privates serving in World War II made $50 a month, or $676.51 in 2016 dollars. It seems like toppling three Fascist dictators would pay better than that, but what do we know.

8. Korean War

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Dressed in parkas (Overcoat, parka type, with pile liner), Missouri infantrymen pose for a New Year greeting, 19th Infantry Regiment, Kumsong front, Korea, 14 December 1951.

The minimum payment for an E-1 in 1952 was $78 a month which would equate to $700.92 in 2016. Most soldiers actually deploying to Korea would have over four months in the Army and so would’ve received a pay bump to at least $83.20, about $747.64 today.

This was in addition to a foreign duty pay of $8 a month along with a small payment for rations when they weren’t provided.

9. Vietnam War

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A U.S. Army soldier smokes after an all-night ambush patrol in Vietnam. Photo: Sgt. 1st Class Peter P. Ruplenas

E-1 wages were not increased between 1952 and 1958, so Korean War and Vietnam War troops made the same amount of money at the lower ranks — except inflation over the years drove the real value of the wages down. New soldiers pocketing $78 would have a salary that equates to 642.71 now, while those with over four months of service who pocketed $83.20 were receiving the equivalent of $685.56 in today’s dollars.

10. Persian Gulf War

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Yeah, $1318.12 should cover patrolling through this. No problem. Photo: Public Domain

Grunts who went into Iraq to topple Saddam Hussein were paid the princely sum of $753.90 a month in basic pay, unless they somehow managed to make it to Iraq with less than four months of service. Then they received $697.20.

These amounts would translate in 2016 dollars to $1318.12 and $1,218.98 respectively.

11. War in Afghanistan and the Iraq War

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Photo: Spc. Victor Egorov

Troops bringing the American flag back to Iraq in 2003 or deploying to Afghanistan in the same time period received just a little more than their Persian Gulf War predecessors, with $1064.70 for soldiers with less than four months of service and $1,150.80 for the seasoned veterans with four months or more under their belts.

In 2016 dollars, those salaries equate to $1377.93 and $1,489.36, a modest increase from the Persian Gulf War.

Articles

Pentagon considers lifetime access to Exchange system for vets

While Congress might have tinkered with the benefits many former servicemembers will receive when they leave the military beginning in 2018, the dizzying array of calculations, percentages, and investment tools now a part of a veteran’s future nest egg may come with a silver lining.


Potentially tax-free shopping for life.

The 2016 National Defense Authorization Act included significant changes to the military retirement system, including a reduction in retirement pay and matching contributions to a military Thrift Savings Plan. The so-called “blended retirement system” is similar to the kind of portable 401(k) that many civilian workers already have.

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This could be you in twenty years.

But in a separate deal, the Pentagon is set to approve a change to the Army and Air Force Exchange Service that would allow former honorably discharged servicemembers to shop at AAFES online for life.

For those not in the know, the Exchange is a department store-like retail outlet that also operates food courts, gas stations, liquor stores, and military clothing stores on U.S. military installations worldwide. While items do not have to be sold at cost (as they do at the commissary – the military grocery stores which are also on bases) if they are sold at the Exchange, they are sold tax-free.

This could mean tax-free commercial electronics for all!

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Time to relive those dorm room days.

The deal would not include access to the military commissary system.

Opening the Exchange service to all veterans would mean 20 million new customers and hundreds of millions in revenue for Morale, Welfare, Recreation services, which is where the dividends from Exchange services are reinvested, Military.com reports.

Access to the Exchange is currently restricted to military members who are active duty, guard, or reserve, retired or disabled military members, authorized family, and Medal of Honor recipients.

While the Pentagon says the proposal from Executive Resale Board is still under review, if approved, the new benefit would go into effect on November 11, 2017.

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