VA Loan Calculator

VA Mortgage Calculator Definitions

Principal

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

While VA loans do not impose monthly or annual mortgage insurance, there is typically a funding fee that is added to the base VA loan amount at inception. The funding fee is determined by eligibility status, down payment, the purpose of the loan (home purchase or refinancing loan).

Closing Costs

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

Closing costs are negotiable and can include things like the loan origination fee, title insurance, funding fee amount and more. It should also be noted that some closing costs like realtor commission, and broker fees are the responsibility of the seller. Well put,

Subsequent Use

If this is not the first time you’ve used your VA loan eligibility, your new VA loan will be considered subsequent use when determining the applicable funding fee.

The VA funding fee can be waived in certain circumstances.

Escrow/Impound

Property Taxes

VA lenders may require that you pay your property taxes every year through your lender. The lender will divide the annual property tax amount by 12 and include it in your monthly mortgage payment.

Homeowners Insurance

Similar to property taxes, your lender will likely pay your homeowners insurance annually. This premium is divided by 12 and added to your monthly mortgage payment.

Since these payments are made annually (sometimes semi-annually or quarterly), your lender will hold the funds in an account called an escrow or impound account. The lender then pays from this account when the bills are due.

What is a VA Loan Calculator?

Our VA loan calculator estimates your monthly house payment when purchasing a home using VA home loan program benefits. A VA loan payment typically consists of monthly homeowner’s insurance, property taxes, interest, and your VA loan’s principal payment amount. The VA loan calculator computes your initial principal balance by accounting for the upfront VA funding fee that is added to your loan product as part of the closing costs. 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've found this page looking for a no down payment mortgage but 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.

When budgeting to buy a new home, your monthly payment calculations need to be precise. The 2020 VA loan calculator is updated to reflect the changes made by the Blue Water Navy Vietnam Veterans Act of 2019. Covering all the bases to ensure an accurate VA loan payment estimate is what makes our’s the best VA loan calculator online.

What is a VA loan?

A VA loan is not much different than a traditional mortgage loan. The main difference being VA loans are guaranteed by the Department of Veteran's Affairs (VA). Therefore, not everyone can have a VA loan. Eligible veterans and active duty service members can us their VA benefits to make a home purchase with no down payment with 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 (IRRRL). When mortgage rates decrease enough to warrant refinancing, a VA approved lender can streamline the refinance process to lower interest rates 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.

VA Loan Requirements

Meeting the eligibility requirements for VA home loans isn’t 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 traditional debt-to-income ratios are always a factor, VA loan requirements include a residual income benchmark in order to qualify. Family size and region determine your residual income requirement.

However, if you're concerned about your credit report, you can rest assured that the VA does not have minimum credit score requirements, and most VA lenders have more lenient policies regarding your credit score than conventional loans.

2020 VA Loan Limits

Prior to 2020, when using a VA mortgage calculator to estimate a monthly payment 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. However, as of January 2020,

VA has removed county loan limits for loans closed after January 1, 2020. Additionally, the VA adjusted the percentages for funding fees to account for the added risk exposure given higher potential loan amounts. Our 2020 VA loan calculator includes all changes made to VA funding fees for 2020.

There are exceptions to the VA removing loan limits. If you already have a VA loan and plan on keeping it while buying another home, you are subject to the VA county loan limit based on your remaining VA loan entitlement. You’ll need a copy of your certificate of eligibility, but our VA entitlement calculator will handle this for you.