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 (purchase or refinance).
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 house payment.
Homeowners Insurance
Similarly to property taxes, your lender will likely pay your homeowners insurance annually. This premium is divided by 12 and added to your monthly 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.
About Our VA Loan Calculator
When calculating a VA loan payment, you must account for the VA funding fee and how it applies given eligibility status, down payment, and whether you are buying or refinancing. Choose the appropriate VA loan calculator to accurately estimate your new VA loan payment.
The 2020 VA loan calculator is updated to reflect the changes made by the Blue Water Navy Vietnam Veterans Act of 2019. Funding fees have increased slightly, and there is no longer a higher fee for eligible reservists.
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. That’s why you can rely on What’s My Payment? to do the math for you.
What is a VA loan?
VA loans are mortgages guaranteed by the Department of Veteran's Affairs. Eligible veterans and active duty military can purchase a new home with no down payment. VA loans can be eligible for Interest Rate Reduction Refinance Loans (IRRRL) when mortgage rates decrease.
VA loans are available to eligible veterans, active duty, reservists, and surviving spouses. VA loans allow 100% financing (no down payment) without paying monthly PMI.
VA Loan Requirements
Meeting the requirements for VA home loans isn’t as simple as joining the military. There are service requirements that must be met. Assuming you’ve met the eligibility standards, VA home loan qualification works a bit differently than other mortgage 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.
2020 VA Loan Limits
VA has removed county loan limits for VA loans closed after January 1, 2020. Our 2020 VA loan calculator includes changes made to VA funding fees for 2020.
While a VA loan will finance 100% of the purchase price in most cases, it is important to know the VA loan limit in your county when you already have a VA loan.
VA Entitlement Calculator
Yes, you can have more than one VA loan, including having more than one at the same time. If you already have a VA loan or have had a VA foreclosure or short sale, our VA entitlement calculator demonstrates what a 2nd VA loan would look like... VA Entitlement Calculator