VA Mortgage Calculator

Home Price 
Down Payment
Loan Termyears
Interest Rate%
VA Loan Limit 
Used Entitlement 
VA Eligibility:


Used VA Loan Before?
 
Service-Related Disability (10+%)?
 
VA Funding Fee

 

Monthly Pay:   $950.79

 
House Price$200,000.00
VA Funding Fee (2.15%)$4,300.00
Down Payment$0.00
Loan Amount$204,300.00
Total of 360 Mortgage Payments$342,283.76
Total Interest$137,983.76
Mortgage Payoff DateSep. 2047

Payment Breakdown

Mortgage Amortization Graph


VA loans are mortgages granted to veterans, service members on active duty, members of national guards, reservists, or surviving spouses, guaranteed by the U.S. Department of Veterans Affairs (VA). As long as the person was given a DD 214 document which proves honorable discharge on good terms, they may qualify. VA loans were originally intended to help growing populations of homeless veterans in the US find affordable housing and still do to this day. As a portion of all mortgages in the US, they are small due to the specific demographic of people that can potentially qualify, but studies have shown that they have the lowest foreclosure rates of all loans.

Pros

Cons

VA Funding Fee

This is the fee that goes towards the upkeep of the program and used in the case of any VA loan borrower who defaults. It equates to a percentage of the loan amount.

The VA Funding Fee varies from 0% to 3.3%, depending on down payment amount, the veteran's military experience, type of home, and loan purpose.

For applicants with 10% or more service-related disability or their surviving spouses, the fee is waived.

It is the only fee pertaining to VA loans with the ability to be financed into the loan amount, which most buyers tend to do. All other fees must be paid in cash at closing, after negotiations to determine whether buyer or seller are responsible for them.

Below is a visual chart to help understand:

Down PaymentFirst Time UseSecond and Subsequent Use
VeteranReservist / National GuardVeteranReservist / National Guard
<5%2.15%2.40%3.30%3.30%
5-10%1.50%1.75%1.50%1.75%
≥10%1.25%1.50%1.25%1.50%

There are also other VA Funding Fee rates given by the VA pertaining to different scenarios:

Other Common Fees Paid at Closing

Certain fees are normally not paid by buyers. These include brokerage fees, real estate commissions, and title insurance is some of them.

VA Entitlement

The practical application of entitlements are as promises to repay VA lenders in the event borrowers default on their VA loans, while also encouraging lenders to extend loans to veterans. However, it is also an act of appreciation for hard-earned and well-deserved services to the nation.

The primary entitlement is $36,000.

Please note that an entitlement is not a guarantee that a buyer is qualified for a VA loan, it is simply an amount that the government is willing to insure if they do qualify.

Prepayment

There are no prepayment penalties or early payoff penalties associated with VA guaranteed loans. According to Title 38 of the Electronic Code of Federal Regulations, "The debtor shall have the right to prepay at any time, without premium or fee, the entire indebtedness or any part thereof not less than the amount of one installment, or $100, whichever is less." More often than not, buyers take on VA loans without down payments, resulting in some of the heftiest mortgages around. By not paying 20% down, which is usual with conventional loans, or even something as small as 3.5% down on FHA loans, financing so much of the housing costs will result in mounting interest going into the future.

Quick Tip: Understandably, veterans or their spouses are prone to financial ups and downs in their lifetimes, hence why VA loans allow such facile upfront costs at the beginning. However, during times of financial freedom, it can be immensely relieving on future finances to make supplemental payments towards existing VA loans. In the calculator under More Options, there is an Extra Payments section to help with this. Simply enter amounts for monthly, yearly, or single payment and calculate to determine the financial feasibility of supplemental payments towards VA loans.

House Affordability

To determine the house affordability of a VA loan, please use our House Affordability Calculator. In the Debt-to-Income Ratio drop down selection, there is an option called VA Loan.

Although DTI ratio requirements are used by VA lenders as main tools to gauge risk concerning potential borrowers, if they cannot be met, other possible considerations are reviewed before an application is finally rejected. VA lenders may look at things such as history of income or dutiful payments of credit as compensating factors.