VA Mortgage Calculator
Calculate your VA loan payments with our easy-to-use calculator
Amortization Schedule
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VA Mortgage Calculator
The VA Mortgage Calculator is an essential tool for veterans, active-duty service members, and eligible surviving spouses considering purchasing a home. Backed by the U.S. Department of Veterans Affairs (VA), VA loans are one of the most powerful and attractive mortgage options available, offering unique benefits to those who have served our country. Use this calculator to estimate your monthly payments, understand the total cost of your loan, and explore the benefits of bi-weekly payments.
What is a VA Loan?
A VA loan is a federally guaranteed mortgage product specifically designed to help eligible members of the military community achieve affordable homeownership. This includes:
Veterans
Active-Duty Service Members
Members of the National Guard
Reservists
Eligible Surviving Spouses
To qualify, the individual generally needs a DD 214 document, which serves as proof of honorable discharge on good terms. VA loans fill a critical need in the housing market, ensuring those who served have access to competitive financing. Historically, studies have shown that VA loans have some of the lowest foreclosure rates among all mortgage types.
Key Benefits of a VA Loan (The Pros)
VA loans offer several distinct advantages that often make them the best choice for eligible borrowers:
Zero Down Payment Required: The most defining feature is the ability to secure a loan with 0% down payment. This is a massive benefit compared to conventional loans.
No Private Mortgage Insurance (PMI): Unlike conventional loans with a low down payment, VA loans do not require monthly PMI. This eliminates a major expense, leading to significantly lower monthly payments.
Lower Interest Rates and Closing Costs: Generally, both the interest rates and closing costs are slightly lower than those associated with non-VA mortgages.
Negotiable Fees: The payment of certain closing costs can be negotiated between the buyer and the seller. Sellers are permitted to pay up to 4% of the loan amount towards closing fees, though they are not obligated to do so.
Reusable Benefit: The VA loan benefit is not limited to first-time buyers; qualified applicants can reuse their VA loan eligibility for future purchases or refinances.
VA Appraisal Protection: Property appraisals are conducted or reviewed by the VA, giving homebuyers an added layer of assurance that they are not overpaying for the home.
Important Considerations (The Cons)
While highly advantageous, VA loans do have certain limitations:
Eligibility Requirements: Only individuals with the proper military service history (evidenced by the DD 214) are eligible.
The VA Funding Fee: This is a key cost (see below) that can be substantial for those who are not exempt.
Primary Residence Only: VA loans can only be used for a primary residence (owner-occupied homes). They cannot be used for purchasing investment properties or undeveloped land.
Property Condition: VA loan guidelines are strict regarding property condition. They are generally not suitable for “fixer-upper” homes as they cannot cover projected home improvements.
Lender/Agent Expertise: Since VA loans are less prevalent than conventional loans, it’s crucial to find a lender and real estate agent who specialize in VA loans to ensure a smooth closing process.
Increased Paperwork: VA loans typically involve more paperwork at closing compared to other loan types.
Understanding the VA Funding Fee
The VA Funding Fee is a non-refundable, one-time payment required for most VA loans. It is a percentage of the loan amount (ranging from 0% to 3.3%) and is essential for maintaining the program’s operations and covering losses in case of borrower default.
| Down Payment | First-Time Use | Second & Subsequent Use |
| < 5% | 2.15% | 3.3% |
| 5% – 10% | 1.5% | 1.5% |
| >10% | 1.25% | 1.25% |
Exemptions and Other Rates
Waiver: The funding fee is waived entirely for applicants with a 10% or more service-related disability (or their surviving spouse).
Interest Rate Reduction Refinancing Loans (IRRRL): This fee is typically 0.50% and is used to lower the interest rate on an existing VA loan or convert an Adjustable-Rate Mortgage (ARM) to a fixed-rate mortgage.
Loan Assumptions: The fee is 0.50% when a non-veteran third party takes over the existing VA loan (with lender approval).
Manufactured Homes (Not Permanently Affixed): The fixed rate is 1.00%.
Financing the Fee: A major benefit is that the VA funding fee can be financed into the total loan amount, reducing the cash needed at closing. However, all other closing fees must be paid in cash after negotiation.
Other Common Closing Costs
In addition to the VA Funding Fee, borrowers should anticipate the following closing costs:
| Fee Name | Purpose |
| Loan Origination Fee | Covers the administrative costs of processing the VA loan. |
| Loan Discount Points | An upfront charge to receive an interest rate lower than the current market rate. Typically, two points (2%) or less is considered reasonable. |
| Credit Report | Paid to agencies for checking the borrower’s credit history. |
| Appraisal Fee | A non-refundable fee for a formal property valuation to determine the maximum loan amount without a down payment. |
| Title Insurance | Confirms there are no outstanding legal claims (liens) against the property. |
| Recording Fee | Paid to the county to officially record the deed. |
| Hazard Insurance & Taxes | Required to ensure the first year’s insurance and property taxes are paid. |
Note: Fees such as brokerage fees, real estate commissions, and title insurance are typically not paid by the buyer in a VA loan transaction.
Mortgage Prepayment Options
A significant advantage of VA-guaranteed loans is that they have no prepayment penalties or early payoff penalties.
You have the right to prepay your loan at any time, in any amount, without premium or fee. Using the Extra Payments section in the calculator allows you to model the impact of:
Extra Monthly Payments
Extra Yearly Payments
Extra One-Time Payments
Making these prepayments can potentially reduce the overall interest paid and significantly shorten your loan term, leading to substantial long-term savings. You should evaluate your current financial situation before committing to extra payments.
Calculating Your House Affordability
While your calculator focuses on monthly payments, determining overall affordability is crucial. Lenders often rely on the Debt-to-Income (DTI) Ratio to assess risk.
For VA loans, lenders often use the VA Loan DTI guidelines, which can be more flexible than standard conventional loan rules. Even if a borrower’s DTI ratio is high, VA lenders will review compensating factors like a history of reliable income, diligent credit payments, and significant assets before a final rejection.
Eligibility is for Veterans, active-duty service members, National Guard/Reservists, and certain surviving spouses. You must meet minimum service requirements and have an honorable discharge (documented on a DD Form 214) to obtain a Certificate of Eligibility (COE).
No to both! This is the VA loan’s biggest benefit:
$0$ Down Payment: You can finance $100\%$ of the home’s value if you have full entitlement.
No PMI: The VA’s guarantee eliminates the need for expensive Private Mortgage Insurance (PMI), saving you money every month.
The VA Funding Fee is a one-time fee paid to the VA (usually $1.25\%$ to $3.3\%$ of the loan). It’s a required cost that supports the loan program.
Yes, you can avoid it if: You are a Veteran or service member receiving VA compensation for a service-connected disability, or you are an eligible surviving spouse.
No, generally not.
Primary Residence Only: The home must be your primary residence. Investment properties or vacation homes are not allowed.
Property Condition: The property must meet the VA’s Minimum Property Requirements (MPRs), meaning it must be safe, sound, and sanitary. Extensive structural “fixer-uppers” usually don’t qualify unless you use a specific VA Renovation Loan option.
Absolutely not. VA loans have no prepayment penalties. You can make extra payments (monthly, yearly, or a lump sum) toward your principal balance anytime without incurring a fee. This helps you save thousands in interest and pay off your mortgage sooner.