VA Loan Calculator

Refinancing?

• VA Cash-out Refinance
• VA IRRRL

How to Use a VA Loan Calculator to Purchase a New Home

Using VA benefits to buy a house is easier than you might think. VA approved mortgage lenders will jump over each other for the chance to be your lender. A VA calculator prepares you for conversations you'll have with your loan officer.

Our VA mortgage calculator accounts for the two VA specific variables that affect your mortgage payment outside of the usual rate, term, and down payment. Both variables impact your VA funding fee.

VA Disability and Waiving the VA Funding Fee

Generally, if you receive VA disability of 10% or greater, your lender will waive your funding fee. The VA funding fee can equate to thousands of dollars, so understanding how it applies to you is important.

Subsequent Use VA Loans

Yes, you can use your VA home loan benefits more than once. However, if you are subject to a funding fee (see above), your funding fee may be higher than someone using their benefits for the first time. To avoid the higher funding fee, the homebuyer can make a down payment of at least 5%. The funding fee is reduced further when the down payment is 10% or more.

We've accounted for each scenario so you can confidently estimate your new VA loan payment while home shopping.

VA Loan Calculator Glossary

Principal

The portion of your monthly payment that applies to and reduces your loan balance is called the principal.

Interest

Interest accrues on your loan every day. When you make a payment, the interest that has accumulated since your last payment is paid first, bringing your accrued interest balance to zero.

VA Funding Fee

VA loans do not contain monthly or annual mortgage insurance. Alternatively, a funding fee is added to the base VA loan amount at inception. The funding fee is determined by eligibility status, down payment, and loan purpose (home purchase or refinance).

Subsequent Use Funding Fee

If VA eligibility has been used previously, the new VA loan's funding fee is considered “subsequent use”, and the applicable funding fee includes a premium unless the homebuyer makes a 5% or greater down payment.

The same funding fees apply to National Guard and Reserve eligible homebuyers.

Service related disability waives the VA funding fee in most cases.

Closing Costs

Closing costs are the expenses paid when you close on your home, not including your down payment.

Some closing costs are negotiable and can include items like a loan origination fee, title insurance, funding fees, and more. Some closing costs, such as realtor commission and broker fees, are the responsibility of the seller.

Escrow/Impound

An escrow payment is the portion of your monthly house payment that is reserved for property taxes and homeowner's insurance.

Property Taxes

VA lenders may require that your loan servicer pay your property taxes by way of your monthly house payment. You'll pay your annual amount in 12 monthly installments as part of your mortgage payment.

Homeowner's Insurance

Similar to the way in which your property tax is paid, your home insurance will be included in your mortgage payment, with the premiums being paid by your servicer.

Your loan servicer will hold the funds paid monthly in an escrow/impound account to be used when tax and insurance bills become due.

What is a VA Loan Calculator?

A VA loan calculator estimates a monthly house payment when using VA home loan benefits to purchase a home. A VA loan payment typically consists of principal, interest, homeowner's insurance, and property taxes.

Our VA loan calculator computes your initial VA loan balance by accounting for the upfront VA funding fee that is added to your base loan amount when your loan is originated. While VA loans typically do not require a down payment, making one may substantially reduce your VA funding fee. Our VA payment calculator also accounts for military service-connected disabilities and whether or not this is your first VA loan.

NOTE: Perhaps you have found this page while looking for a no down payment mortgage option but you do not have VA benefits. If so, there may be another option available in certain areas. Learn more about USDA loans here. Additionally, FHA loans are a great low down payment alternative. Other loan types may be available

When budgeting to buy a new home, your monthly payment calculations need to be precise. Our VA loan calculator is regularly maintained with the most up to date VA loan specifications. Covering all the bases to ensure an accurate VA loan payment estimate is what makes this the best VA loan calculator online.

What is a VA loan?

A VA loan is not much different from a traditional mortgage loan other than a portion of all VA loans are guaranteed by the Department of Veterans Affairs (VA). Therefore, not everyone can have a VA loan. Eligible veterans and active duty service members can use their VA benefits to make a home purchase with no down payment with favorable loan terms, including very competitive interest rates.

Once a home is purchased with a VA loan, the homeowner becomes eligible for further VA home loan benefits: The Interest Rate Reduction Refinance Loan. When mortgage rates decrease enough to warrant refinancing, a VA approved lender can streamline the refinance process to lower your interest rate and/or monthly payment. VA IRRRLs can save thousands of dollars over the life of the loan and typically do not require an appraisal or monthly income verification.

Types of VA Mortgages

There are three types of VA home loans:

1. Purchase Loans can be used by eligible service members to purchase primary residences only.
2. Cash-out Refinance Loans can be used to access a home's equity or to refinance a non-VA loan to a VA loan.
3. Interest Rate Reduction Refinance Loans (IRRRL) are used to improve an existing VA loan's terms when interest rates improve.

Choosing a VA Lender

The VA loan process begins like any other mortgage loan. The Department of Veterans Affairs does not directly originate VA loans, so you must contact a VA approved lender to obtain one.

Not all VA lenders are the same. Some have lower fees and higher rates, while others have lower rates with higher fees. Choosing a mortgage lender is an important decision. Shopping around to obtain multiple quotes is rarely a bad idea.

VA Loan Requirements

Meeting the eligibility requirements for VA home loans is not as simple as enlisting in the military. There are specific military service requirements that must be met. Assuming you’ve met the eligibility standards, VA home loan qualification works a bit differently than other mortgage loan programs.

While a traditional debt to income ratio (DTI) is always a factor, VA loan requirements include a residual income benchmark in order to qualify. Family size and region determine your residual income requirement.

NOTE: VA loans do not have a minimum credit score. However, VA lenders may impose their own minimum score requirements.

VA Mortgage Rates

VA Mortgage rates are extremely competitive but vary from lender to lender. Browse today's VA mortgage rates and compare VA loan options. VA loans are typically offered with loan terms of 15 or 30 years.

2024 VA Loan Limits

VA eliminated loan limits for homebuyers with full available entitlement in January of 2020. Prior to then it was necessary to know the maximum VA loan amount for the area in which you were buying. If you were purchasing a home above the VA county loan limit, a down payment was required. The down payment requirement now only applies if you are using secondary entitlement.

Secondary entitlement refers to entitlement remaining after using a portion of full entitlement to buy or refinance with a VA loan. You can have more than one VA loan, but your second VA loan amount must meet loan limit guidelines based on the amount of entitlement remaining on your certificate of eligibility and must be used to purchase a new primary residence.

Learn more about Tier 2 Entitlement

Calculate a VA Monthly Mortgage Payment

Enter your home's purchase price, down payment (if any), loan term, and interest rate to calculate a monthly VA loan payment. Select whether or not you receive VA disability and if this is your first VA loan for more accurate results. Include annual homeowners insurance and property taxes to complete your VA mortgage payment calculations.

For special circumstances like tier 2 entitlement and refinancing, choose from the following calculators.

More VA Mortgage Calculators

• VA Cash-out Refinance
• VA IRRRL Calculator
• VA Entitlement Calculator

Thank You for Your Service

If you are a veteran or active service member, What's My Payment thanks you for defending our freedom and wishes you and your family the very best.