That’s correct!! Veterans, don’t always look for the lowest interest rate when purchasing a home. As you know many military folks will sell their home within a 4 to 7 year period. That said when shopping for a home loan your number one consideration when financing a house should be the estimated period you intend to hold the home. Based on this estimate, you may want to consider having the lender to pay your VA funding fee at the cost of a slightly higher interest rate. In most cases, the Veteran comes out ahead using this strategy. In one recent transaction closed in Virginia Beach this month my borrower saved over $4,300 on his funding fee at a cost of approximately $38 per month. Simple math showed it would take approximately ten years to recoup the cost of the VA funding fee which is funded (added) to the purchase price. This family intends to live in Virginia Beach for no more than 6-8 years upon which the borrower will be retiring and returning to Florida. This veteran reviewed the math and agreed.