10 Mar Things You Need To Know While Using A VA Loan Calculator
Initiated for American Veterans, active military members, reservists and selected family members, VA mortgages are home loan facilities guaranteed by the VA. Widely known for providing mortgage facilities at lower interest rates, 0% down payment and no PMI requirements, VA loans have helped millions of current/former military member’s combat homelessness. While the interest rates and other taxes are comparatively low for a VA loan, here’s an estimate of all the details you need to know to enter in a VA loan calculator.
VA calculator helps an applicant estimate the monthly payments, interest rates, taxes, insurance and all other details associated with a VA mortgage.
Details You’ll Need While Using a VA Loan Calculator
1. Home Price- To get an estimate of your monthly payment, you’ll need to enter the home price for which you are applying for the loan. The loan limit varies according to the state. However, these limits can be uplifted if an applicant is eligible for full entitlement.
2.Down Payment- The VA guarantees to provide a 0% down payment option for all purchases. However, if the home’s price exceeds the loan limit guaranteed by the VA, an applicant can cover that up by paying the down payment.
3.ZIP Code- VA loan limits vary according to the county/state you are living in. So, the applicants must enter their ZIP code in the VA loan calculator to determine if they are eligible for a loan without the down payment.
4.Loan Program- The VA loan program comprises various options like VA purchase, IRRRL and cash-out refinance. An applicant can also choose between a 30-year or 15-year plan. Selecting a 30-year plan can significantly reduce your monthly payments and other expenditures.
5.Interest Rate- The interest rates are pre-filled according to the current rates in the market. These rates depend upon different factors like financial condition, current market condition ns, credit score and down payment.
6.Property Tax- VA loan calculator automatically estimates your property tax according to your house’s price.
7.Home Insurance- Although the VA offers no PMI requirement, some lenders might require you to pay a certain amount as insurance in some cases.
VA Loan Brief
VA Mortgage facilities are available to current/former military members, reservists, survivors and family members. To qualify, you must have a valid COE, a minimum credit score and enough residual income.
- No down payment requirements
- No pre-penalty charges
- Lower interest-rates
- No PMI requirement
- Flexible guidelines
Breakdown of Monthly Payments
As stated above, your monthly payment depends upon various factors you enter in a VA loan calculator. Suppose your home price is $300000, your average monthly payment might reach up to $1665, in case of no down payment option and an average interest rate of 2.9%.