VA Mortgage Payment Calculator
Active-duty service members, retired military, and surviving spouses can benefit from favorable terms and rates offered through the U.S. Department of Veterans Affairs loan program.
Through the VA loan program, eligible military personnel can take advantage of perks including waived down payments without having to purchase private mortgage insurance and more lenient terms set by your lender. This is because 25% of a loan acquired through the VA program is guaranteed by the federal government.
That being said, there are still housing costs veterans will want to take into account to estimate how much home they can afford. A VA mortgage payment calculator is a great tool for military service members to take advantage of when determining these costs.
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What is a VA Mortgage Payment Calculator?
A VA mortgage calculator, also known as a mortgage payment calculator or a loan calculator, allows qualified military service members to input personal financial variables that can be combined with other housing costs.
These factors are used to calculate an estimated monthly payment for homebuyers using a VA Purchase or VA Refinance Loan. It is a useful tool for homebuyers to get an idea of how much home they can afford before they start looking.
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How Does a VA Loan Calculator Work to Calculate Payments?
A VA loan calculator factors in the amount you’re borrowing, interest rate, and other costs to estimate how much you’ll pay each month and over the course of the loan. The following inputs are used to calculate your estimated monthly payments:
- Home value. This is the cost of the house which will determine the principal balance owed before interest.
- Down payment. With a VA loan, there is no down payment necessary. However, some home buyers may opt to put down a down payment to reduce their VA funding fee and their overall monthly payment.
- Interest rate. This is calculated based on your credit score, the loan type, and other factors that indicate the level of risk associated with issuing your loan.
- Loan term. This is the length of the loan, which is typically issued at intervals of 15 or 30 years.
- Credit score. Your credit score can impact the interest rate on your loan. While having a lower credit score won’t automatically disqualify you from loan eligibility, a higher credit score will result in lower monthly payments.
- Loan type. Depending on if you’re purchasing a home for the first time with a VA loan or refinancing with a cash-out or IRRRL loan, your VA funding fee will differ.
- Military service. Military service members who can qualify for a VA loan are determined with the VA’s Certificate of Eligibility. It discloses the nature of discharge for military personnel and outlines service requirements.
- First time or subsequent VA loan usage. First-time military service home buyers qualify for the full amount offered by the VA loan program. Subsequent VA loan users are still eligible for this benefit with variation depending on how much of the loan they have restored. The funding fee rate also slightly increases for subsequent VA loan borrowers.
- Military disability. Home buyers with a disability rating of 10% or more, have a Purple Heart, or are a surviving spouse are exempt from the VA funding fee. Home buyers who are not exempt and are subsequent VA loan users are subject to a slightly increased VA funding fee.
- VA funding fee. The VA funding fee can range from 0 to 3.6% depending on your disability status. If you’ve used a VA loan before it is likely to increase the VA funding fee.
Using a VA mortgage payment calculator is a great starting point for getting an idea of what your monthly payments might be, but you should still talk with your lender to get a more precise figure or if you need someone to clarify how the factors involved in a VA mortgage payment calculation will affect your monthly payments.
What Costs and Fees Are Not Included in a VA Mortgage Payment Calculator?
A VA mortgage payment calculator is a great pre-approval tool that will give you an estimate of your monthly payments falling within a certain range, but there are still other costs and fees VA homebuyers will want to be aware of when considering the total repayment amount on a loan.
Closing costs and lending fees are assumed, rather than explicit input variables for a VA loan calculator. In total, these fees typically add another 3 to 5% on the loan amount. Some common loan-related closing costs include:
- An origination charge. The VA allows lenders to charge a fee that covers origination, processing, and underwriting costs. It can be applied as a flat-rate, lump-sum fee, or be based upon a combination of fees. Regardless, this fee cannot exceed 1% of the loan amount.
- An appraisal fee. A professional appraiser will conduct a formal assessment of the property and neighborhood to determine the value of the house. Appraisal costs set by the VA can range between $200 to $600 depending on where you live. When choosing a lender, go with Hero Loan — we’ll pay the appraisal fee for you.
- Title charges. In the event that a title-related issue arises after closing on a loan, title insurance protects lenders and homebuyers from liens, legal defects, or other title-related issues. If the party filing the claim for the property title wins the case, both the home buyer and lender are entitled to the coverage provided by title insurance. This is why lenders will usually require the purchase of title insurance.
- Discount points. This is an optional cost that can ultimately lower total loan repayment costs by lowering a home buyer’s interest rate. With discount points, buyers are able to pay for full or partial points towards the housing purchase. A point is equal to 1% of the loan amount. This means if your loan amount is $200,000, one discount point is equal to $2,000. Although this option is not frequently used, VA home buyers can opt for this service to pay off a loan faster.
- A credit report. Your lender will order a report to assess your credit when determining your approval for a VA loan. Not all lenders charge this fee, which can cost between $10 to $100.
- Inspection fees. Well, termite, or septic fees may be applicable for buyers depending on the property or state location. Some of these costs may be covered by the seller. Termite inspections can range from $75 to $100. Septic and well inspections can range from $50 to $500 depending on the thoroughness of the inspection.
A VA loan calculator is a great place to start when getting an idea of your monthly payments. However, keep in mind this pre-approval tool provides an estimate of costs and still involves some guesswork. Ultimately, your best bet when getting a more accurate picture of your total monthly costs happens when you speak with a loan representative.
At Hero Loan, our lending team will serve our veterans with the same level of passion and commitment that active-duty and retired military service members have demonstrated in service to this country. We will ensure that veteran home buyers can make an informed decision with step-by-step guidance to walk you through the home buying process.
Hero Loan is proud to show its appreciation for military service members through our efforts to support veteran-owned businesses, events, and charitable projects like the Fisher House Foundation. We value offering our clients a personalized, face-to-face approach to make sure their needs are seen and heard when it comes to finding a way to finance their dream home.
Hero Loan’s professional and efficient services can help our clients qualify for a loan in less than five minutes, with closing periods in as little as 14 days. Thanks to our ability to streamline the underwriting process in-house, we can expedite the refinance process and take the hassle out of loan application paperwork.
Call us today at (866) 222-0219 to speak with a VA loan representative who will gladly help you figure out a monthly payment plan that works for you and your family. You can also reach out to one of our friendly lending experts, through our live chat option to get an idea of how much home you can afford today.