VA Loan Basics
VA loans are a government-backed mortgage program uniquely for Veterans, military members and select military spouses with a valid Certificate of Eligibility (COE). Because they’re backed by the VA, these loans often look different from other mortgages when you run the numbers.
Key VA loan features that affect your payment include:
- No required down payment for most borrowers
- No private mortgage insurance (PMI)
- Typically lower-than-average interest rates
How This VA Loan Calculator Differs From Others
Calculating monthly payments for a VA loan is similar to other mortgage options, but it's not the same. VA loans have unique factors that affect the accuracy of the payment.
Veterans United's VA mortgage calculator is designed specifically for VA loans and considers the VA Funding Fee, your down payment amount, disability rating, prior VA loan usage, the specific loan type, HOA fees, estimated taxes and insurance to provide the most accurate estimate of your purchasing power.
These details make a real difference in your calculations. Here are a few common examples:
- A disability rating of 10% or higher removes the VA Funding Fee entirely, which can lower a monthly payment by roughly $40–$50 on a $300,000 loan.
- Putting 5% down instead of 0% reduces both the loan amount and the funding fee, often lowering the monthly cost by more than $100 on a $300,000 home.
- Reusing your VA loan benefit results in a slightly higher funding fee, which can add $20–$30 per month compared with first-time use.
- An IRRRL typically results in a lower monthly payment than a cash-out refinance, thanks to its lower funding fee.
How to Use the VA Loan Calculator
Adjust the inputs in the calculator to fit your unique homebuying or refinancing situation. Your estimated VA loan monthly payment automatically updates as you change the fields.
Once you’ve entered all the information, you can review a detailed payment breakdown, see how your costs change over time and view the amortization schedule for a more in-depth look.
A Closer Look at the Inputs
| Input | Explanation |
|---|---|
| Home Value | The potential purchase price of the home, not including a down payment. |
| Down Payment | An upfront amount paid towards the principal. VA loans don’t require a down payment, but adding one can reduce your loan amount, lower the VA Funding Fee (if it applies) and decrease your monthly payment. |
| Interest Rate | The percentage of a principal amount charged for borrowing money. Interest rates in the tool reflect the current market and include APR, which estimates closing costs and fees, but are for educational purposes only. Your interest rate may differ. For personalized rate ranges, see our VA mortgage rates page. |
| Loan Term | The length of time you'll take to repay the loan, typically 15 or 30 years. Most borrowers choose 30 years, but a 15-year mortgage helps you build equity and pay off your home faster, though it comes with higher monthly payments. |
| Loan Type | The VA loan program provides both purchase and refinance options. Calculations for loan types differ due to the VA Funding Fee. While this tool also works for refinancing, our VA refinance calculator for cash-out and IRRRLs goes into more detail. |
| Military Type | Your military status can affect the VA Funding Fee. Guard and Reserve members now pay the same rates as active-duty service members and Veterans, while eligible surviving spouses are exempt. |
| VA Specifics | This section also relates to the VA Funding Fee. A disability rating of 10% or higher provides a full fee exemption. Borrowers who aren't exempt and have used a VA loan before are subject to a slightly higher fee. |
| Advanced Settings | Adjust whether the VA Funding Fee is paid upfront or rolled into the loan, and update property taxes, homeowners insurance and HOA fees based on your location. Typical estimates are around 1.2% for property taxes and 0.35% for insurance. |
What is the VA Funding Fee?
The VA Funding Fee is a government fee paid to the Department of Veterans Affairs to help keep the VA loan program running for years to come. Depending on your loan type, down payment amount and whether you’ve used the benefit before, the fee typically ranges from 0.5% to 3.3% of the loan amount.
You’re exempt from the funding fee if you have a VA disability rating of 10% or higher, received a Purple Heart on active duty or qualify as an eligible surviving spouse.
Estimate your VA Funding Fee today.What is an Amortization Schedule?
An amortization schedule shows how your VA loan is paid off over time. Each monthly payment is split between principal (the amount you owe on the loan) and interest (the cost of borrowing). Reviewing this breakdown helps you see how your balance changes throughout the life of the loan.
To view your schedule, select the “Amortization Schedule” tab in the calculator.
Payment Estimate vs. Affordability Calculator: What's the Difference?
Not all mortgage calculators perform the same function, and understanding the differences can save you time and effort.
This VA loan calculator is designed to estimate monthly mortgage payments based on the home price or loan amount you already have in mind.
If you’re still figuring out how much you can comfortably afford, start with a VA loan affordability calculator instead. It looks at your income, monthly debts and recurring expenses to help you identify a realistic price range before you begin shopping.
It's best to start by calculating how much you can afford and then estimate your monthly mortgage payments.
How Much Will My VA Loan Payment Be?
Several factors play into the cost of your monthly loan payment with a VA loan. Typically, the biggest factors include the home price, down payment amount, interest rate and whether you have to pay the VA Funding Fee.
As with any mortgage calculator, these numbers are estimates. For exact figures based on your financial situation, connect with a Veterans United home loan specialist.
Tips to Lower Your VA Mortgage Payment
There are several ways VA buyers can reduce their monthly mortgage costs:
- Make a down payment. While not required for a VA loan, even a small down payment can reduce your loan balance and lower your monthly payment.
- Trim your wish list. A home that checks most of your boxes but costs a little less can make room in your budget. Small trade-offs in size or features can add up to meaningful savings over time.
- Extend your loan term. Stretching your VA loan from a 15-year to a 30-year term can reduce your monthly payment by spreading costs over more years. Just keep in mind that this typically means paying more interest over the life of the loan.
- Improve your credit profile. While the VA doesn't set a minimum credit score, lenders do. Strengthening your credit may help you qualify for better rates and lower monthly payments.
VA Loan Rates
Interest rates used in the VA mortgage calculator are shown for illustrative purposes only. Your rate may differ based on a variety of factors, including your credit score and the current market conditions.
