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VA loan calculator

How to use this calculator

To use this VA mortgage calculator, enter the loan amount, loan term in years or months and interest rate to estimate your monthly payments. Slight changes in each of these factors can have a significant impact on your payment, so use the most accurate numbers you can in each of these fields to get a solid estimate. 

  1. Enter your loan amount: This is how much you borrow, not including the down payment (if you’re making one — VA loans don’t typically require them). 
  2. Enter your loan term: This is how long it will take to fully repay the amortized loan. The most popular loan term lengths are 30 years and 15 years.
  3. Enter your interest rate: If you’ve already gotten preapproved, enter your rate here. If you aren’t sure yet what rate you’ll receive, you can start with the current average 30-year rate shown on Bankrate’s VA loan rate table.
  4. Click the “calculate” button: This will show you the estimated monthly payments for the criteria you’ve input above.
  5. Click “show amortization schedule” (optional): A chart will display showing the amount of principal and interest paid, and the remaining loan balance, at any selected point in your amortization schedule. Click on the “Schedule” tab for a month-by-month view of this information. 
  6. Enter extra payment information (optional). Making additional payments to the principal can help you pay off your mortgage faster and save on interest.

Note: This calculator focuses strictly on principal and interest payments, but you’ll still need to account for additional costs, such as insurance premiums, property taxes and HOA fees (if applicable). VA loan borrowers are also responsible for paying a funding fee, which varies depending on the loan amount and other factors.

Factors that affect your VA loan

VA loans typically come with rates 25 to 50 basis points lower than their conventional counterparts. So, if the going rate for conventional loans is around 6.5%, you can expect VA rates to be around 6% to 6.25%. However, just like with conventional loans, the rate you get will be affected by:

  • Your down payment: VA loans are one of the only loan options that don’t require a down payment. While this is a plus for those unable to cover a big upfront cost, it’s smart to make one anyway if you’re able to. A higher down payment will generally result in a more competitive rate, lower monthly payments, less interest owed and — crucial for VA loans — a lower funding fee.
  • Your credit score: As with any type of mortgage, a better credit score will get you a better rate. While there is no standardized minimum credit score for VA loans, each lender may set its own minimum.
  • Your income and debt: Your debt-to-income (DTI) ratio is a measurement of your monthly debt obligations as a percentage of your income. The lower this DTI is, the better chance you’ll qualify for a loan, and the better your interest rate will be.

VA loan formula

The formula for our VA Loan Calculator is the same as a typical loan calculator formula:

M = P · [ r(1 + r)ⁿ / ((1 + r)ⁿ − 1) ]

Key:

  • M = Total monthly mortgage payment
  • P = Principal loan amount
  • r = Monthly interest rate: Lenders provide you with an annual rate, so you’ll need to divide that figure by 12 to get the monthly rate. If your interest rate is 5%, your monthly rate would be 0.004167 (0.05/12=0.004167).
  • n = Number of payments over the loan’s lifetime: Multiply the number of years in your loan term by 12 to get the number of monthly payments for your loan. For example, a 30-year fixed mortgage would have 360 payments (30x12=360).

Understanding your results

After you’ve input your variables, the calculator will estimate your monthly principal and interest payment (not including home insurance, property taxes and other fees). For example, for a $400,000 loan with a 30 year term at 6.2% interest, the monthly payment would be $2,449.88. 

Say you want to lower your monthly payment, so you decide to take out a smaller loan of $350,000. You can enter the new loan amount, then click “calculate” and see that, for a loan of that size with the same term and interest rate, you’ll pay $2,143.64. You can also see what the results would be if you were to secure a lower interest rate, or shorten the loan term from 30 years to 15 or 20.

This calculator can also show you how your loan amortizes with each payment, when your loan will be paid off, how much interest you’ll pay over time and how making additional payments will affect your overall payoff date.

What to consider next with a VA loan

When you’re ready to apply for a VA loan, be sure you understand the VA funding fee and how it applies to your particular circumstances. The funding fee is a percentage of your loan amount, and that percentage varies depending on whether you’re buying or refinancing, whether you’ve had a VA loan before and the size of your down payment (if you’re making one). It can be paid either upfront at closing or as part of the loan balance. 

In addition to the funding fee, be sure to consider — and budget for — other fees not accounted for in this calculator. These can include:

  • Homeowners insurance premiums
  • Property taxes
  • Closing costs (such as an origination fee and title services fees)
  • Earnest money and escrow deposits
  • Homeowners association dues (if applicable)

Once you have these factors accounted for, you can have a better understanding of how much home you can afford.

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