AD | VA loans are designed to assist military service members, veterans, and eligible surviving military spouses buy a home. Additionally, a VA loan may be used to repair or retain a current house or even build a new one. Because the U.S. Department of Veterans Affairs guarantees a certain portion of your loan, it allows you to find terms that work for your budget and needs. That includes forgoing a down payment and limited closing costs, among other perks.
How Using a VA Loan Calculator Can Help
So, how much can you afford? Use What’s My Payment’s VA Loan Calculator to help you. Here’s how it works.
Step 1: Input the Cost of the Home
In the designated box at the link provided above, type in the cost of the home you’re interested in buying. If you’re modifying, adapting or building from scratch, that number will be the cost of the materials and labor needed to complete the project.
Step 2: Decide How Much You Will Use as a Down Payment
As mentioned above, you can get a VA loan without a down payment. However, any amount you put down on the loan will help lower your monthly costs and reduce the final amount that you pay over time. Determine how much you want to put down, from 0% to a custom number, based on your needs and wants.
Step 3: Determine the Interest Rate
In many cases, you won’t be able to choose your interest rate. Talk to your lender or your realtor about what the average interest rate is in your area. It may not be exact, but it will give you a good idea of what your payment could be with the interest rate factored in.
Step 4: Choose a Loan Term
The average mortgage loan is for 30 years, but if you’re in a position to pay more each month and pay the loan off faster, this can save you quite a bundle in interest, as well other loan costs. Decide if you want to pay it off in 20, 15 or even 10 years to get a more precise monthly loan payment, using the VA Loan Calculator.
Step 5: Provide Location Data
Because loan terms and costs vary by state, it’s important to provide information about where you live. If you’re moving to a new state, make sure you select the state where you’ll be making the home purchase for the most accurate information on your VA loan.
Step 6: Include Your Credit Score
As your credit score goes up, your loan costs could go down. Input an accurate number for your credit score, which helps determine your monthly cost. In some cases, a high credit score may help you achieve eligibility for additional perks or loan benefits.
Step 7: Give Your Tax and Insurance Information
This may be an estimate, but having an idea of what your annual property tax and homeowner’s insurance is going to cost can help create a more accurate picture of the amount of loan you qualify for, as well as how much you’ll be paying each month for your home.
Step 8: Offer Your VA Specific Information
A couple of final questions ask whether you receive VA disability benefits and if you’ve ever taken advantage of a VA loan before. This is important information so be accurate when you check the boxes. It’s much better to declare any vital benefits you already get up front, saving you the trouble of having to change the terms of your loan further down the road when they are discovered.
The VA Loan Calculator is a handy tool that can help you estimate how much you’ll pay on a loan for your home. The calculator is updated regularly so you can trust you’re getting a valid picture of what your loan may look like. Keep in mind though that interest rate fluctuations can change the numbers over time so it’s important to check back often if you’re ready to take the leap and take advantage of a VA loan.
* This is a collaborative post – please see my Disclaimer.
You have done such a great job in this post of helping to simplify VA loans and make them less confusing. Thank you for sharing!
Thank you so much, Heidi, glad it was helpful!