A VA Mortgage Calculator assists veterans and active-duty service members, national guardsmen, reservists, and surviving spouses to estimate their monthly mortgage payments. The loans are special and are guaranteed by the U.S department of veterans affairs (VA) which makes them affordable to purchase a home, particularly to those who may have experienced difficulties in owning a home in the past. 

How this VA Mortgage Calculator differs from others

A VA mortgage calculator is unique as compared to the traditional mortgage calculators because it considers special factors that determine your monthly payments. It is specifically created to work with VA loans, and it takes into account the VA Funding Fee, your down payment, the disability rating, prior use of VA loans, the type of loan, the HOA fees, the taxes, and insurance. These details can significantly impact your payment estimate.

VA funding fee

VA Funding Fee is a single payment charged to borrowers during the acquisition of a VA loan. It is a percentage of the amount of loan, which is usually between 0-3.3 percent and it depends on the amount of down payment, military service of the veteran, the nature of the home, and the purpose of the loan. This charge assists in sustaining the VA loan program as well as defaults. va.gov

 

The fee is not charged to applicants whose service-related disability is 10% or more (or spouse of applicant). The VA funding fee may be charged to the loan balance, however, other charges will have to be paid in cash at the time of closing, and the responsibility between the buyer and seller will have to be negotiated. freedommortgage

 

Below is a chart that shows the standard VA funding fee structure:

Down Payment	First Time Use	Second and Subsequent Use
<5%	2.15%	3.3%
5-10%	1.5%	1.5%
≥10%	1.25%	1.25%

 

VA Funding Fee = Loan Amount × Funding Fee Percentage

What Will My VA Loan Payment Be?

A number of factors affect how you will pay your monthly VA loan. The largest ones tend to be the purchase price of the house, size of the down payment, interest rate and whether you have to pay VA Funding Fee. All these factors will come together to give you your total monthly payment.

Who Can Qualify for a VA Loan?

A veteran should have to satisfy some service requirements in order to qualify as a VA loan recipient, including:

• Active duty service in war not less than 90 days, or
• No less than 181 days of active duty service at peacetime, or
• More than 6 years of National Guard or Reserves service.

 

Another requirement that the veterans must acquire is the Certificate of Eligibility (COE), which can be ordered via the VA. To see a complete list of requirements to qualify, go to the official site of VA. Surviving spouses of service members who have died in the line of duty or from a service-related disability may qualify for a VA loan if they have not remarried.

How our VA Mortgage Calculator works

Our VA Mortgage Calculator makes it easy to estimate your monthly mortgage payment by autofilling key information. Just like with any mortgage, your monthly payment includes the principal and interest (P&I), which are clearly shown in the breakdown. You can also choose to add property taxes and home insurance into the total payment estimate.

Here’s how it works:

• Home Price: Enter the amount you’re paying for your home. A lower price can reduce your monthly payment.
• ZIP Code: Input your ZIP code to account for your county’s VA loan limits, which influence down payment requirements.
• Property Tax: This is based on the home price, divided by 12 for your monthly payment. If you know the exact amount, you can enter it directly.
• Home Insurance: Required by lenders, this protects your property and liability. The annual amount is divided by 12 for your monthly payment.
• Down Payment: While VA loans typically don’t require a down payment, offering one can lower the loan amount and VA funding fee.
• Loan Program: Choose between 30-year, 15-year, or 5-year ARM programs. The program affects both your interest rate and monthly payment.
• Interest Rate: Your rate will be based on factors like credit score and down payment, with the calculator using the current national average.
• HOA Fees: If applicable, enter your monthly HOA fees for townhomes or condos, which cover community maintenance and amenities.

Pros of VA Loans

This calculator gives you a quick, personalized estimate of your VA loan payment, helping you plan for homeownership.

• VA loans do not require a down payment, allowing financing of 100% of the home purchase.
• No mortgage insurance is needed, leading to lower monthly payments compared to conventional loans.
• They feature lower interest rates and limited closing costs, with the VA imposing restrictions on charges.
• Sellers can contribute up to 4% towards closing costs, further reducing expenses.
• VA loans are flexible in terms of refinancing and can be borrowed by eligible borrowers on several occasions.
• No prepayment penalties are imposed and thus early loan payoff is possible without extra charges.
• VA loans can mostly be assumed and this allows qualified military personnel to assume loans without charges.

Overall, VA loans are a financial relief with high advantages to the qualified service members and veterans.

Tips to Lower Your VA Loan Payments

In case you are interested in lowering your monthly VA loan payments, you can take into consideration a few strategies:

1. Put down a down payment: Contrary to a VA loan where a down payment is not mandatory, any little outlay will decrease your loan value and also make your monthly payments smaller.
2. Filter your home search: In case you are willing to go a bit lower in price, you may see a house that suits most of your expectations. Disposing a cheap house will help you have additional space in the budget.
3. Extend your loan term: It is possible to reduce your monthly payment by extending your loan term by 15 years to 30 years because the expense will be divided over a longer time. But only remember that this can lead to paying of higher interest during the period of the loan.
4. Improve your credit score: Though VA does not have a minimum credit score requirement, individual lenders do. It might also be useful to raise your credit score to be able to get a lower interest rate and reduce your monthly payment.

These are just a few ways that can be done to make your VA mortgage easier and cheaper to manage.

FAQs

1. What is the VA Funding Fee and why must I pay it?

Paying the VA Funding Fee once helps keep the VA loan program open. It ranges from 0% to 3.3% of the loan amount, depending on down payment and military service. This cost is waived for soldiers with 10% or greater disability.

2. Can I seek VA loan help again?

Veterans can reuse VA loan benefits. You can receive another VA loan. However, the second loan may cost more.

3. How does the VA loan tool calculate my monthly payment?

The VA loan estimator considers house price, down payment, interest rate, VA Funding Fee, property taxes, and insurance. Based on your loan, it types in crucial facts to estimate.

4. Who can acquire VA loans?

Veterans who served 90 days in wartime, 181 days in peacetime, or 6 years in the National Guard or Reserves can get VA loans. Qualified spouses or partners of deceased service members may also qualify. Admission requires a Certificate of Eligibility.

5. Do I need a new VA loan?

You can refinance using an Interest Rate Reduction Refinance Loan. VA loans are usable. The loan conditions or interest rate may alter to lower your monthly payments.