11 Mar Calculate Your Monthly Payment With VA Loan Mortgage Calculator
One of the most critical parts of borrowing a loan is estimating the monthly expenses. Although a VA loan offers lower interest rates, 0% down payment options and flexible guidelines, it is advisable to calculate your monthly payment before opting for it. A VA loan mortgage calculator enables us to determine the potential costs (monthly and overall) associated with the loan.
Estimating Monthly Expenses With VA Loan Mortgage Calculator
A VA calculator provides an estimate of all the payments based on the information you enter. It also makes assumptions about the interest rates, closing costs, lender’s fee and down payment.
All you need to do is enter the home’s price and it will calculate your monthly payment.
Here’s a list of what a VA loan mortgage calculator would provide you with-
1. Interest Rate- The interest rate entirely depends upon the current market conditions. While they are always fluctuating, the VA guarantees the applicants to provide the mortgage at competitive rates.
2. Principal Rate- The VA calculator also provides the principal amount, i.e., home price minus other expenses like closing costs and taxes.
3. Home Insurance- One of the advantages of VA loans is that the applicant is not required to pay the Private Mortgage Insurance (PMI). However, in some cases, the department might need you to pay for the home insurance.
4. VA Funding Fees- The funding fee is the amount charged for borrowing a VA loan. An applicant can either pay it upfront or get it rolled into the principal amount for monthly payments.
How To Use A VA Loan Mortgage Calculator
To estimate your monthly payment, you need to fill out the following information-
• Loan type (VA loan purchase or refinance)
• Duration of the loan (15 years or 30 years)
• Price of the home
• If you are borrowing the loan for the first time or not
• Down payment, if any
After filling out the above-stated information, the calculator will provide you a brief of your monthly payment, which will be the total of your monthly installments, insurance, tax and interest rates.
A Brief On VA Loans
VA loan facilities are guaranteed by the US Department of Veterans Affairs and are provided by private lenders. Available only to current/former military members, reservists, family members and selected spouses, these programs offer some remarkable benefits like-
1. $0 down payment options
2. Lower interest rates
3. No PMI requirement
4. Easier eligibility criteria
5. No pre-payment penalty
6. Lower closing costs
7. Easy application procedure
8. Flexible guidelines
How To Reduce Your Monthly Payments
There are various methods that could help you reduce your monthly payments-
1. Try getting in touch with at least 3 VA-approved private lenders. This could help you get a lower interest rate.
2. Always choose a 30-year plan. This could significantly drop your monthly payment and could contribute to some major savings.
3. The VA doesn’t require you to pay any down payment. However, paying some amount up-front can significantly reduce your monthly payment.
4. If the VA loan mortgage calculator estimates your monthly payment beyond your budget, you can look for a house with comparatively fewer amenities.