The VA Home Mortgage Calculator is an essential tool for veterans, service members, and eligible surviving spouses to estimate their total monthly housing expenses. This calculation includes the Principal & Interest (P&I) payment, the mandatory VA Funding Fee (rolled into the loan), property taxes, and home insurance. Get a clear estimate before you apply.
VA Home Mortgage Calculator
VA Home Mortgage Calculator Formula
1. Adjusted Principal (P_adj) = Home Price - Down Payment
2. VA Funding Fee (FF) = P_adj * (Funding Fee %)
3. Total Loan Amount (P) = P_adj + FF
4. Monthly Interest Rate (i) = Annual Interest Rate / 12 / 100
5. Total Payments (n) = Loan Term (Years) * 12
6. Monthly P&I = P * [ i(1+i)^n / ((1+i)^n - 1) ]
7. Monthly Tax (T_m) = Annual Tax / 12
8. Monthly Insurance (I_m) = Annual Insurance / 12
9. Total Monthly Payment (MP) = Monthly P&I + T_m + I_m
Formula Source & Further Reading: CFPB VA Loan Overview | VA.gov Funding Fee Information
Variables
- Home Purchase Price: The total agreed-upon price of the property.
- Down Payment: The amount paid upfront, typically zero for a VA loan but included for completeness.
- Annual Interest Rate (%): The annual rate charged on the loan principal.
- Loan Term (Years): The duration of the mortgage (e.g., 15 or 30 years).
- VA Funding Fee (%): A mandatory fee paid to the VA, which can be financed into the loan. The percentage varies based on service history and prior VA loan use.
- Annual Property Tax: The estimated yearly cost for property taxes.
- Annual Homeowner’s Insurance: The estimated yearly cost for hazard insurance, which is required by the lender.
Related Calculators
Explore other tools to manage your home financing:
- Conventional Mortgage Payment Estimator
- FHA Loan Affordability Calculator
- Mortgage Refinance Savings Calculator
- Debt-to-Income (DTI) Ratio Calculator
What is the VA Home Mortgage Calculator?
A VA home loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. It’s designed to help veterans, active-duty service members, and eligible surviving spouses purchase homes. Its primary benefits are zero down payment requirements, competitive interest rates, and no requirement for private mortgage insurance (PMI).
The calculator estimates the total monthly payment, often referred to as PITI (Principal, Interest, Taxes, and Insurance). For a VA loan, a critical component included in the loan principal is the VA Funding Fee. This fee offsets the cost to taxpayers since the VA guarantees a portion of the loan to the lender.
How to Calculate VA Home Mortgage (Example)
- Gather Inputs: Assume a $300,000 Home Price, 0% Down Payment, 6.0% Interest Rate, 30-Year Term, 2.15% Funding Fee, $3,600 Annual Tax, and $960 Annual Insurance.
- Calculate Total Loan Principal: $300,000 (P_adj) + ($300,000 * 2.15% Funding Fee) = $306,450 Total Loan Amount (P).
- Calculate Monthly P&I: Use the amortization formula with $306,450 principal, 0.5% monthly rate (6%/12), and 360 payments (30*12). This results in an estimated $1,837.49 P&I.
- Calculate Monthly Tax & Insurance: Annual Tax $3,600 / 12 = $300. Annual Insurance $960 / 12 = $80. Total $380.
- Determine Total Monthly Payment: $1,837.49 (P&I) + $380 (T&I) = $2,217.49 Estimated Monthly Payment.
Frequently Asked Questions (FAQ)
Is Private Mortgage Insurance (PMI) required for a VA loan?
No. One of the greatest benefits of the VA loan is that it does not require PMI, even with a zero down payment. This can save the borrower hundreds of dollars per month compared to conventional loans.
Can I finance the VA Funding Fee?
Yes. The VA Funding Fee is typically financed, or rolled, into the total loan amount. Our calculator includes this step to give you an accurate principal balance.
What does PITI stand for?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents the total monthly housing cost that lenders use to qualify borrowers.
Are the property tax and insurance figures estimates?
Yes. The annual property tax and insurance figures are estimates provided by you and are subject to change by your local jurisdiction and insurance provider.