VA Loan Calculator 2021

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The VA loan calculator provides the monthly mortgage payment for a VA loan. The monthly mortgage payment includes the principal repayment, interest, taxes, insurance, and the VA funding fee. The VA funding fee is an important expense of the VA loan and is a one-time expense that can be paid up front or financed into your monthly mortgage payment.

$
Down Payment
$
%

I am VA Disabled

This is my second VA Loan

%
Monthly VA Loan Payment Breakdown
$1,743
Monthly Payment
Principal & Interest
$1,202
VA Fee Monthly Payment
$20
Property Tax
$
Home Owners Insurance
$
HOA Fees
$
Total Monthly Payment
$1,743
VA Loan Results
VA Funding Fee Total: $4,702.5
VA Amortized Monthly Payment: $19.83
Show Amortization Schedule

How does the VA Loan Calculator work?

The VA loan calculator calculates the monthly mortgage payment for the VA loan. The mortgage rates, requirements, and eligibility criteria can be found on the VA loan page. The calculator works by calculating the principal and interest, along with the additional costs such as the VA funding fee which can be a significant expense. The following inputs are required by the calculator:

  1. Home Price – the purchase price of the home you are buying. The VA loan limits have been removed in 2020, hence, no matter the size of the loan it can be eligible to be insured by the Department of Veterans Affairs.
  2. Down Payment – there is no minimum down payment for the VA loan. The VA loan is one of the few mortgage programs apart from the USDA loan with a 0% down payment.
  3. VA Loan Type – There are three different options to choose from, VA Purchase loan, Cash-out Refinance, VA Interest Rate Reduction Refinance Loan (IRRRL). The first one is for home buyers and the other two are for homeowners who are looking to refinance.
  4. VA Status – There are three options, regular military, reserves/national guard, and if you are the surviving spouse of a veteran. If you are a surviving spouse, the VA funding fee is removed.
  5. VA Options – Veterans that are disabled do not have to pay the VA funding fee, whereas, if the VA loan program has been used before then the VA funding fee will be higher.
  6. Interest Rate VA mortgage rates are competitive and can change based on credit score and down payment.
  7. State – This helps determine the average property tax in the area.
  8. Additional Options – Fees such as property taxes, insurance, and HOA fees are also included to provide the total monthly mortgage payment.

The monthly payment is calculated using the amortization formula along with the additional fees. The VA funding fee is unique to the VA loan and the amount depends on the type of VA loan, down payment, and VA options such as first-time use or VA disabled.

Can I lower my VA Loan monthly mortgage payment?

To reduce your monthly mortgage payment:

  1. Longer Loan Term: Initially if you had selected a 15-year mortgage , consider taking a 30-year mortgage. This will extend the life of the loan and will result in lower mortgage payments as the loan is amortized over a longer time frame. However, in a 30-year mortgage, the total interest paid for the mortgage rises.
  2. Larger Down Payment: VA loans do not have a minimum down payment requirement which is a great benefit for veterans, as similar government programs like the FHA loan have a 3.5% down payment requirement. With a larger down payment, the mortgage amount is smaller and hence the monthly payment is also smaller.
  3. Lower Home Price: If the home price can be negotiated to be lower or a home with a lower price tag is bought then the monthly payment will be lower as a smaller amount is borrowed.
  4. Lower Interest Rates: Although VA mortgage rates are very competitive, different lenders can alter the rate based on other factors such as credit score, debt-to-income (DTI) ratio, and the loan-to-value (LTV) ratio. Hence, it is smart to shop around for a lower mortgage rate which will in turn reduce interest and the monthly mortgage payment.

VA Funding Fee

What is the VA Funding Fee?

The VA funding fee is the one-time fee that has to be paid by the home buyer. The fee is used to reduce the cost of providing VA loans as these loans are backed by the Department of Veterans Affairs which is a government agency. The VA funding fee helps lower the risk in the event the home buyer defaults on their payments. The VA loan does not have private mortgage insurance (PMI) or a minimum down payment and has competitive mortgage rates, in order to provide these benefits to veterans the VA funding fee is required to cover some of the costs.

How much is the VA Funding Fee in 2020?

The average VA funding fee for a home purchase loan is 2.3% of the mortgage amount. However, the VA funding fee can be in the range of 0 – 3.6% based on several factors. The size of the VA funding fee depends on three main factors, the type of VA loan, the amount of down payment, and whether this is the first or subsequent use of the VA program. The VA funding fee can even be removed if the service-person has a disability or if the VA loan is for a surviving spouse.

VA Funding Fee for Purchase Loans

The VA funding fee as a percentage of the mortgage amount for purchase loans is shown in the VA Funding Fee chart:

VA Funding Fee Chart 2020

Down PaymentFirst Time UseSubsequent Use
Less than 5%2.3%3.6%
5% to 10%1.65%1.65%
Greater than 10%1.4%1.4%

If you have a down payment of the less than 5% then the VA funding fee is higher at 2.3% of the mortgage amount for borrowers who are using the VA program for the first time. The VA funding fee is at 3.6% if the program has been used more than once. Similarly, as the down payment increases, the funding fee reduces to 1.65% up to a 10% down payment and then to 1.4% for any amount greater than 10%.

VA Funding Fee for the Cash-out Refinance Loan

The VA cash-out refinance provides veterans the opportunity to refinance their mortgage at a lower rate and take cash out from the equity in the home. The funding fee for the VA cash-out refinance loan is similar to the purchase loan, however, the fee does not reduce if you have a larger down payment.

VA Funding Fee Chart 2020

Down PaymentFirst Time UseSubsequent Use
-2.3%3.6%

VA Funding Fee for the Interest Rate Reduction Refinance Loan (IRRRL)

The VA IRRRL which is also known as VA streamline allows veterans to refinance their mortgages at a lower rate or even convert their adjustable-rate mortgages (ARM) into a fixed-rate mortgage. The funding fee for the VA IRRRL is 0.5% of the mortgage amount and is not dependent on a down payment or the number of times the VA loan program has been used.

VA Funding Fee Chart 2020

Down PaymentFirst Time UseSubsequent Use
-0.5%0.5%

How do I pay the VA Funding Fee?

The VA funding fee has to be paid to the lender who then sends it to the Department of Veterans Affairs. There are two different methods in which the funding fee can be paid:

  1. Financing the fee into the mortgage amount such that the monthly mortgage payment increased to include the fee.
  2. Paying the fee at closing

Exemptions for the VA Funding Fee

You will not have to pay the VA funding fee if:

  1. You are a Purple Heart Recipient
  2. Surviving spouse of a veteran
  3. You are receiving VA compensation for a service-linked disability
  4. You are eligible to receive VA disability compensation but are receiving active pay or retirement pay instead
Any calculators or content on this page is provided for general information purposes only. Casaplorer does not guarantee the accuracy of information shown and is not responsible for any consequences of its use.