How to Calculate a VA Home Loan
VA Loans are designed to help American military veterans secure affordable home loans. These mortgage loans are governed, mandated and guaranteed by the U.S. Department of Veterans Affairs (VA). Whether for veterans or members that are active in service, these loans help military personnel purchase single-family abodes, condos, multi-unit properties or newly constructed homes. However, it’s important to use an online VA loan calculator to estimate your monthly VA loan payments. These calculators offer a range of options, including customizing your payment estimates.
How Can a VA Loan Calculator Help Me?
VA Loans are essential programs that offer financing for eligible veterans to purchase homes. In fact, they can take advantage of no down payments, and these loans are usually issued by qualified lenders. If a veteran meets the criteria for this loan, he or she can benefit by using VA loan calculators to save time and money. Here are some of the important aspects of using these online calculators:
- You are able to calculate your monthly VA loan payments. In fact, these calculators offer options for traditional VA purchase loans, VA interest rate reduction or refinance, as well as cash-out refinancing.
- VA calculators help military veterans, reserves, National Guard, and even surviving spouses determine monthly payments for timely home ownership.
- The maximum loan amount with no down payment is around $484,350. However, this depends on the city, state and county you reside or want to buy a home in. Therefore, you input your purchase price of the home to see if it falls within or outside of this price range. For home purchasing prices that exceed $700,000, there are additional loan requirements that must be met within your county.
- Your estimated down payment will be calculated based on the exact – or close to – purchasing price of the home or condo.
- You also have to input your loan term and estimated rates. This is done with user-friendly tools and drop-down menus. However, this all depends on your unique home-buying situation, and these loans are usually paid back within 15-30 year time-frames. Similarly, the average interest rate is around 4.62% with a 4.890% APR. Again, you will need to speak to your loan officer for exact interest and APR rates.
Additional VA Loan Calculator Information
Online VA loan calculators also feature sections for estimating your credit scores. This includes poor at below 640, along with fair at 640-679 and good at 680-719. You can also input your credit score if it falls within the excellent category — 720+. You will be asked if you are a disabled veteran, as well as if you’ve used a VA loan before. Property taxes and home insurance must also be added to determine a precise, concise monthly repayment amount. These VA loan calculators are easy to use and perfect for turning your home ownership dreams into a reality.
These VA loan calculators also help you understand your eligibility. For example: a home purchase price of $150,000 with a $0 down payment can result in a $982 monthly payment estimate. This is inclusive of principal and interest at $771, along with taxes at $150 and insurance at $44. Similarly, this example also includes a $17 VA funding fee. This can help you make a worthwhile and informed borrowing decision. Similarly, you are able to see if taking these VA loans out falls within your financial umbrella for repayment with flexible interest and term rates.