Use this comprehensive VA Home Loan Mortgage Calculator to quickly estimate your total monthly housing payment, including principal, interest, VA funding fee, property taxes, and home insurance.
VA Home Loan Mortgage Calculator
VA Home Loan Mortgage Calculator Formula
The core P&I calculation is based on the standard fixed-rate amortization formula, adjusted for the VA Loan Principal which includes the Funding Fee.
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Formula Source: Consumer Financial Protection Bureau (CFPB)
Variables Explained
The calculator uses the following variables to determine your total monthly payment (P&I + Escrow):
- M (Monthly Payment): The required monthly payment for Principal and Interest.
- P (Principal Loan Amount): The total amount borrowed, which is the purchase price minus the down payment, plus the VA Funding Fee.
- i (Monthly Interest Rate): The annual interest rate divided by 1200.
- n (Number of Payments): The loan term in years multiplied by 12.
- Escrow: Monthly Property Tax (Annual Tax / 12) + Monthly Home Insurance (Annual Insurance / 12).
Related Calculators
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- Annual Percentage Rate (APR) Calculator
- Mortgage Refinance Savings Calculator
- Debt-to-Income (DTI) Ratio Calculator
- Home Equity Line of Credit (HELOC) Estimator
What is a VA Home Loan Mortgage Calculator?
A VA Home Loan Mortgage Calculator is a specialized tool designed to estimate the monthly costs associated with a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA). These loans are unique because they often require no down payment and do not require private mortgage insurance (PMI), but they typically include a mandatory VA Funding Fee.
The calculator takes into account the VA Funding Fee—which is often rolled into the total loan principal—to determine the accurate principal and interest (P&I) payment. Crucially, it combines the P&I amount with monthly estimates for property taxes and home insurance (known as escrow payments) to provide a realistic figure for the total monthly housing expense, helping veterans budget effectively.
How to Calculate a VA Home Loan Mortgage (Example)
Follow these steps to understand how the calculator arrives at the total monthly payment:
- Determine the Base Loan Amount: Subtract the down payment (if any) from the Home Purchase Price.
- Calculate the VA Funding Fee: Multiply the base loan amount by the VA Funding Fee percentage (e.g., 2.15%).
- Find the Total Principal: Add the calculated VA Funding Fee to the Base Loan Amount to get the total amount financed.
- Calculate Monthly P&I: Use the amortization formula with the Total Principal, the Annual Interest Rate, and the Loan Term (in months) to find the monthly principal and interest payment (M).
- Calculate Monthly Escrow: Divide the Annual Property Tax by 12 and the Annual Home Insurance by 12.
- Total Monthly Payment: Add the Monthly P&I payment (M) and the Monthly Escrow payments.
Frequently Asked Questions (FAQ)
Is the VA Funding Fee included in the monthly payment?
Yes, the VA Funding Fee is typically rolled into the total loan amount (principal), meaning you pay it off over the life of the loan as part of your monthly principal and interest payment.
Do VA Loans require Private Mortgage Insurance (PMI)?
No. One of the major benefits of a VA Loan is that it does not require PMI, even with 100% financing. The VA Funding Fee serves a similar purpose in guaranteeing the loan, but it is a one-time fee.
What is the typical loan term for a VA mortgage?
The most common loan term is 30 years, but VA loans are also available in 15-year and even 25-year terms.
What does ‘Escrow’ include in this calculation?
Escrow refers to the monthly amounts collected by your lender to cover annual costs like property taxes and homeowner’s insurance (PITI = Principal, Interest, Tax, Insurance). These amounts are not fixed and can change yearly.