VA Mortgage Calculator

Our comprehensive VA Mortgage Calculator helps you estimate monthly payments, total interest, funding fees, and amortization details for VA loans. This powerful tool is designed specifically for veterans, active-duty service members, reservists, and eligible surviving spouses to make informed decisions about their VA home loan benefits.

Modify the values and click the Calculate button to analyze your VA mortgage options
years







+ More Options
/year
/year
/year

Annual Tax & Cost Increase

Extra Payments

from
from
on
Monthly Pay: $3,228.96
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:
$1,162,425.33
Total Interest:
$651,675.33
Mortgage Payoff Date:
Mar. 2055
44% 56% Principal Interest

Amortization Schedule

Annual Schedule
Monthly Schedule
Year Interest Principal Ending Balance
1 $33,041 $5,707 $505,043
2 $32,659 $6,089 $498,954
3 $32,251 $6,497 $492,458
4 $31,815 $6,932 $485,526
5 $31,351 $7,396 $478,129
6 $30,856 $7,892 $470,237
7 $30,327 $8,421 $461,816
8 $29,763 $8,985 $452,832
9 $29,161 $9,587 $443,245
10 $28,519 $10,229 $433,016
Month Interest Principal Ending Balance
1 $2,767 $462 $510,288
2 $2,765 $464 $509,824
3 $2,762 $467 $509,358
4 $2,760 $469 $508,889
5 $2,757 $472 $508,417
6 $2,755 $474 $507,943
7 $2,752 $477 $507,466
8 $2,750 $479 $506,987
9 $2,747 $482 $506,505
10 $2,744 $485 $506,020

Related Calculators

Mortgage Calculator FHA Loan Calculator Refinance Calculator Mortgage Payoff Calculator Amortization Calculator

Understanding VA Mortgage Loans

VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA) designed to help veterans, active-duty service members, reservists, National Guard members, and eligible surviving spouses become homeowners. These loans offer significant benefits compared to conventional mortgages, making homeownership more accessible to those who have served our country.

The Purpose of the VA Mortgage Calculator

Our VA Mortgage Calculator is designed to help eligible borrowers understand the financial implications of a VA loan. It provides detailed estimates of monthly payments, total interest costs, funding fees, and amortization schedules. By using this calculator, you can:

  • Determine your monthly mortgage payment based on your loan amount, interest rate, and term
  • Calculate the VA funding fee based on your military status and loan history
  • See how different down payment amounts affect your loan terms
  • Understand the total cost of your loan over its lifetime
  • View a detailed amortization schedule showing how your loan balance decreases over time
  • Analyze how extra payments can help you pay off your loan faster

How To Use This Calculator

Using our VA Mortgage Calculator is straightforward. Follow these steps to get accurate results:

  1. Enter Home Price: Input the purchase price of the home you're considering.
  2. Specify Down Payment: Enter your planned down payment as either a percentage or dollar amount.
  3. Set Loan Term: Choose the length of your loan, typically 15 or 30 years.
  4. Enter Interest Rate: Input the annual interest rate you expect to receive.
  5. Select VA Eligibility: Choose your military status (Active/Veteran, Reservist/National Guard, or Surviving Spouse).
  6. Indicate Prior VA Loan Use: Specify whether you've used a VA loan before, as this affects your funding fee.
  7. Service-Related Disability: Indicate if you have a service-related disability of 10% or more, which may exempt you from the funding fee.
  8. VA Funding Fee Option: Choose whether to finance the funding fee into the loan or pay it upfront.
  9. More Options (Optional): For a more detailed analysis, you can enter additional information such as property taxes, home insurance, HOA fees, and extra payment plans.
  10. Calculate: Click the "Calculate" button to see your results.

What Are VA Loans?

VA loans are mortgage loans that are guaranteed by the U.S. Department of Veterans Affairs but issued by private lenders such as banks and mortgage companies. The VA guarantees a portion of the loan, which allows lenders to offer more favorable terms to eligible veterans, including:

  • No down payment requirement (in most cases)
  • No private mortgage insurance (PMI)
  • Competitive interest rates
  • Limited closing costs
  • No prepayment penalties
  • Assistance to borrowers facing financial difficulty

Types of VA Loans

The VA offers several types of loan programs to meet different needs:

1. VA Purchase Loans

These are the standard VA loans used to purchase a home. They require no down payment (up to certain limits) and no private mortgage insurance.

2. VA Interest Rate Reduction Refinance Loans (IRRRL)

Also known as a "VA Streamline Refinance," this option allows veterans to refinance an existing VA loan to a lower interest rate with minimal paperwork and often without an appraisal or credit underwriting.

3. VA Cash-Out Refinance Loans

This option allows veterans to refinance a non-VA loan into a VA loan, or to take cash out of their home equity to pay off debt, fund home improvements, or for other purposes.

4. Native American Direct Loan (NADL) Program

This program helps Native American veterans or veterans married to Native Americans purchase, construct, or improve homes on Federal Trust Land.

5. Adapted Housing Grants

The VA offers grants to veterans with certain service-connected disabilities to help them purchase or modify a home to accommodate their disability.

VA Funding Fee

The VA funding fee is a one-time payment that the veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn't require down payments or monthly mortgage insurance.

The amount of the funding fee varies based on:

  • The type of loan (purchase, refinance, etc.)
  • The amount of your down payment
  • Your military category (regular military, Reserves, or National Guard)
  • Whether it's your first time or subsequent use of a VA loan

Below is a chart showing the standard VA funding fee structure for purchase loans:

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%

For members of the National Guard and Reserves, the funding fee is slightly higher. For IRRRLs, the funding fee is typically 0.5% regardless of military category or prior use.

Veterans receiving VA disability compensation, those eligible to receive VA compensation but receiving retirement or active duty pay, and surviving spouses of veterans who died in service or from a service-connected disability are exempt from paying the funding fee.

Other Common Fees Paid at Closing

In addition to the VA funding fee, borrowers may need to pay other closing costs, including:

  • Loan Origination Fee: Covers the lender's administrative costs for processing the loan.
  • Discount Points: Optional fees paid to reduce the interest rate.
  • Credit Report Fee: Covers the cost of pulling your credit history.
  • Appraisal Fee: Pays for a professional assessment of the home's value.
  • Title Insurance: Protects against problems with the title to your property.
  • Recording Fees: Paid to the local government to record the deed.
  • Survey Fee: Covers the cost of verifying property lines.

The VA limits the closing costs that veterans can pay. Some fees, such as attorney fees, real estate commissions, and prepayment penalties, cannot be charged to the veteran.

Pros and Cons of VA Loans

Advantages of VA Loans

  • No Down Payment Required: Perhaps the biggest benefit of VA loans is the ability to purchase a home with no money down, up to the conforming loan limit in most areas.
  • No Private Mortgage Insurance (PMI): Unlike conventional loans with less than 20% down, VA loans don't require PMI, which can save hundreds of dollars per month.
  • Competitive Interest Rates: VA loans typically offer lower interest rates compared to conventional loans.
  • Limited Closing Costs: The VA restricts the closing costs that can be charged to veterans.
  • No Prepayment Penalty: You can pay off your VA loan early without penalties.
  • Assumable Loans: VA loans can be assumed by qualified buyers, which can be attractive in a high-interest-rate environment.
  • Assistance for Struggling Borrowers: The VA provides assistance to help veterans avoid foreclosure if they encounter financial difficulties.

Disadvantages of VA Loans

  • VA Funding Fee: While this can be financed into the loan, it's an additional cost that doesn't apply to conventional loans.
  • Property Restrictions: VA loans can only be used for primary residences, not investment properties or vacation homes.
  • Stricter Property Requirements: The VA has specific Minimum Property Requirements (MPRs) that homes must meet, which can limit your options or require repairs before closing.
  • Seller Hesitation: Some sellers may be hesitant to accept offers with VA financing due to misconceptions about longer closing times or stricter appraisal requirements.
  • Limited to Eligible Veterans: Only those who meet military service requirements can qualify.

VA Loan Eligibility

To be eligible for a VA loan, you must meet one of the following service requirements:

  • Veterans: Generally, you must have served at least 90 consecutive days during wartime or 181 days during peacetime.
  • Active Duty Service Members: You must have served at least 90 continuous days.
  • National Guard and Reserve Members: You must have served at least 6 years in the Selected Reserve or National Guard, or 90 days of active duty service, with at least one day during wartime.
  • Surviving Spouses: Spouses of veterans who died in service or from a service-connected disability may be eligible.

In addition to meeting service requirements, you must also:

  • Have a valid Certificate of Eligibility (COE) from the VA
  • Meet the lender's credit and income requirements
  • Plan to occupy the home as your primary residence
  • Have a discharge other than dishonorable

No Down Payment Mortgage

One of the most significant benefits of VA loans is the ability to purchase a home with no down payment. This feature makes homeownership accessible to veterans who might not have substantial savings for a down payment but have the income to support monthly mortgage payments.

While no down payment is required, making even a small down payment can reduce your funding fee and lower your monthly payments. Our calculator can help you see how different down payment amounts affect your overall loan costs.

VA Loan Rates

VA loan interest rates are typically lower than conventional loan rates, often by 0.25% to 0.5%. This is because the government guaranty reduces the risk for lenders. However, rates vary based on:

  • Your credit score and financial history
  • The loan term (15-year vs. 30-year)
  • The type of interest rate (fixed vs. adjustable)
  • Current market conditions
  • The lender you choose

It's always a good idea to shop around and compare offers from multiple VA-approved lenders to ensure you're getting the best rate possible.

IRRRL Calculator

The Interest Rate Reduction Refinance Loan (IRRRL), also known as the VA Streamline Refinance, is designed to help veterans refinance their existing VA loans to a lower interest rate with minimal paperwork and often without an appraisal or credit underwriting.

Benefits of an IRRRL include:

  • Lower interest rates and monthly payments
  • Ability to switch from an adjustable-rate to a fixed-rate loan
  • Reduced funding fee (typically 0.5%)
  • No appraisal or credit underwriting package required in most cases
  • Faster and simpler process compared to other refinance options

To qualify for an IRRRL, you must already have a VA loan on the property you wish to refinance, and you must certify that you currently live in or previously lived in the home.

VA Loan Closing Costs

While VA loans offer many benefits, they still involve closing costs. These typically range from 3% to 5% of the loan amount and may include:

  • VA funding fee
  • Loan origination fee
  • Discount points
  • Appraisal fee
  • Credit report fee
  • Title insurance
  • Recording fees
  • Survey fee

The VA limits what closing costs veterans can pay. Additionally, you can negotiate for the seller to pay some or all of your closing costs, up to 4% of the loan amount. You can also finance the VA funding fee into your loan amount.

VA Loan Assumptions

VA loans are assumable, meaning that a qualified buyer can take over the existing VA loan and its terms, including the interest rate. This can be particularly valuable in a rising interest rate environment, as the buyer can assume the lower rate of the existing loan.

For loans closed before March 1, 1988, anyone can assume a VA loan without VA approval. For loans closed after that date, the buyer must qualify for the loan based on credit and income, and must either be a veteran using their VA entitlement or a civilian who will occupy the home as their primary residence.

When a non-veteran assumes a VA loan, the veteran's entitlement remains tied to the property until the loan is paid off. This can affect the veteran's ability to use their VA loan benefit for another property.

VA Loan Prepayment

VA loans have no prepayment penalties, which means you can make extra payments or pay off the loan early without incurring additional fees. This can save you thousands of dollars in interest over the life of the loan.

Our calculator includes an option to calculate the impact of making extra payments, whether monthly, annually, or as a one-time payment. This can help you see how much you can save by paying off your loan faster.

Strategies for prepaying your VA loan include:

  • Making one extra payment per year
  • Rounding up your monthly payment
  • Making bi-weekly payments instead of monthly payments
  • Applying windfalls (tax refunds, bonuses, etc.) to your principal

VA Loan Affordability

When determining how much house you can afford with a VA loan, lenders look at two key ratios:

  • Debt-to-Income (DTI) Ratio: This compares your monthly debt payments to your gross monthly income. The VA prefers a DTI of 41% or less, though exceptions can be made.
  • Residual Income: This is the money left over after paying major expenses and is unique to VA loans. The required amount varies based on your location and family size.

Unlike conventional loans, VA loans don't have a fixed maximum loan amount. Instead, they have county-specific loan limits that determine how much you can borrow without making a down payment. These limits are based on median home prices in each county and are updated annually.

If you want to purchase a home above the county loan limit, you'll need to make a down payment of 25% of the difference between the purchase price and the loan limit.

References and Resources

Wikipedia Articles

Research Papers

Video Resources

Related Articles and Guides