VA Mortgage Calculator
Calculate your potential VA home loan monthly payments, funding fee, and view amortization schedules. This calculator helps veterans and service members understand their mortgage options through the VA loan program.
Monthly Payment: $3,283.23
| House Price | $500,000.00 |
| VA Funding Fee (2.15%) | $10,750.00 |
| Down Payment | $0.00 |
| Loan Amount | $510,750.00 |
| Total of 360 Mortgage Payments | $1,181,963.44 |
| Total Interest | $671,213.44 |
| Mortgage Payoff Date | May. 2055 |
Amortization Schedule
| Year | Interest | Principal | Ending Balance |
|---|
| Month | Interest | Principal | Ending Balance |
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VA Loans Information
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 are intended to help veterans find affordable housing.
VA Funding Fee
A VA funding fee is a one-time payment that borrowers typically pay as part of acquiring a VA loan. The fee is a percentage of the loan amount that varies from 0% to 3.3% depending on factors such as the down payment amount, veteran’s military experience, type of home, and loan purpose.
For applicants with 10% or more service-related disability (or their surviving spouse), the fee is waived.
The VA funding fee can be financed into the loan amount. All other fees must be paid in cash at closing after negotiations to determine whether the buyers or sellers are responsible for them.
Standard VA Funding Fee Structure
| Down Payment | First Time Use | Second and Subsequent Use |
|---|---|---|
| <5% | 2.15% | 3.3% |
| 5-10% | 1.5% | 1.5% |
| ≥10% | 1.25% | 1.25% |
Other VA Funding Fee Rates:
- Interest Rate Reduction Refinancing Loans: 0.50%
- Assumptions: 0.50%
- Manufactured Home Loans (Not Permanently Affixed): 1.00%
Other Common Fees
Aside from the VA funding fee, borrowers will most likely need to pay some closing fees:
- Loan Origination Fee — Used to cover administrative costs for processing of VA loans.
- Loan Discount Points — Charged to receive interest rates lower than current market rates.
- Credit Report — Paid to credit agencies to evaluate the credit history of a potential borrower.
- Appraisal Fee — Formal statements of property value to determine maximum loan amounts.
- Hazard Insurance and Real Estate Taxes — Necessary to insure payment of taxes and insurance during the first year.
- Title Insurance — Used to verify there are no outstanding liens against the property.
- Recording Fee — Used to record deed on county records.
Pros and Cons of VA Loans
Pros
- No down payment required (one of the few mortgage options with this benefit)
- No mortgage insurance required, saving borrowers significant expenses
- Negotiable fees, where sellers can pay up to 4% of the loan amount in closing costs
- Can be used for purchases or refinancing, with benefits available to reuse
- Typically lower interest rates and closing costs compared to conventional loans
- VA property appraisals help ensure buyers don’t overpay for homes
Cons
- Only available to qualified veterans and service members with proper documentation
- VA funding fee can be expensive for those not exempt
- Cannot be used for “fixer-upper” homes or projected improvements
- Limited lender options, as not all lenders work with VA loans
- Can only be used for primary residences, not investment properties or vacant land
- More paperwork required compared to conventional loans
For those who qualify, VA loans are often the best option, especially for veterans exempt from the funding fee or those planning to make little or no down payment. When comparing loan options, carefully consider the VA funding fee against the benefits the loan provides.