VA Loan Basics
VA loans are a government-backed mortgage program uniquely for Veterans, military members and select military spouses with a valid Certificate of Eligibility (COE). VA loans have a variety of benefits, including the flagship benefits of $0 money down, no private mortgage insurance (PMI) and typically lower-than-average interest rates.
VA Loan Calculator vs. Broad Mortgage Calculator
Calculating monthly payments for a VA loan is similar to other mortgage options, but it's not the same. VA loans have unique factors that affect the accuracy of the payment, including the VA funding fee, VA disability rating, prior VA loan usage and the loan type.
Veterans United's VA loan calculator considers these factors and more to estimate your purchasing power with a VA loan more accurately.
How to Use the VA Loan Calculator
To use the VA loan calculator, adjust the inputs to fit your unique homebuying or refinancing situation. The calculator updates your estimated VA loan payment as you change the fields. In the "Advanced Settings" section, you can update the property taxes and insurance estimates for your specific location, though 1.2% and 0.35% are typical.
A Look at the VA Loan Calculator's Inputs
| Input | Explanation |
|---|---|
| Home Value | Home value is the potential purchase price of the home, not including a down payment. |
| Down Payment | The down payment is an upfront amount paid towards the principal. VA loans do not require a down payment, and most VA borrowers choose 0% down. However, if you decide to put money down, it can reduce the VA funding fee - if required - and your overall monthly payment. |
| Interest Rate | The interest rate is the cost of borrowing. Interest rates in the calculator include APR, which estimates closing costs and fees and is the actual cost of borrowing. Interest rates in the calculator are for educational purposes only, and your interest rate may differ. You can view current VA mortgage rates here. |
| Loan Term | Loan term is the length you wish to borrow - typically 15 or 30 years. |
| Credit Score | Interest rates typically vary based on several factors, including credit score. Estimate your credit score for a more accurate VA loan payment. |
| Loan Type | VA loans provide both purchase and refinance options. Calculations for loan types differ due to the VA funding fee. While this calculator works for refinancing, we also have a specific VA refinance calculator for cash-out and IRRRLs here. |
| VA Specifics | VA specifics relate to the VA funding fee. VA buyers exempt from the VA funding fee include those with a disability rating greater than 10%, those who've received a Purple Heart and surviving spouses. Borrowers who aren't exempt and have used a VA loan before are subject to a slightly higher VA funding fee. |
What is the VA Funding Fee?
The funding fee is a governmental fee paid to the Department of Veterans Affairs to help keep the VA loan program running for years to come. The VA funding fee ranges from .5 to 3.3 percent and not every borrower is required to pay it.
What is an Amortization Schedule?
An amortization schedule for a VA loan is a breakdown of your monthly VA mortgage payments over the life of the loan. Amortization tables typically break down the principal and interest paid over time.
To view amortization on your VA loan payment, click on the tab in the calculator that says "Amortization Schedule."
How Much Will My VA Loan Payment Be?
There are a variety of factors that play into the calculation of your monthly loan payment. Typically, the factors affecting your monthly payment include the home price, down payment, interest rate, and if you have to pay the VA funding fee.
As with any mortgage calculator, these numbers are estimates. To get exact figures, contact Veterans United Home Loans and speak with a home loan specialist.
VA Loan Rates
Interest rates used in the VA mortgage calculator are shown for illustrative purposes only. Your rate may differ based on a variety of factors, including your credit score and the current market conditions.
