Veterans Affairs (VA) loans make sense for active duty service members, former service members, members of the national guard, and surviving spouses looking to acquire a loan for the purchase price of a home. A mortgage payment can seem daunting, especially if you have just retired from military service. However, for those with VA eligibility, a VA loan can help you and your family buy a primary residence with a lower monthly payment than a traditional mortgage. How much can you save on your down payment amount and your payment funding fee? A VA loan calculator from Security America Mortgage can show you just how much a VA home loan will cost you.
To establish the best financial map for your future, consider using a VA loan calculator. This calculator can give you a fair monthly payment estimate for VA loans based on:
● Personal information like income and loan amount
● National averages and state-based averages
● Available rates and annual percentage rate from your VA lender
● VA funding fee and whether or not you are exempt
● Service related disability
● Price of the home
● VA loan use
● Loan limits (if applicable)
● Interest payment
● Annual property tax
Craft the Best Financial Future for You and Your Family with a VA Loan
VA loans typically help keep your estimated monthly payment down to a manageable cost, a VA loan benefit that makes it better than other loan types. Other perks of a VA loan include:
● No down payment is necessary
● No homeowner’s insurance or private mortgage insurance
● Better interest rates
These savings can help you pay off the loan balance on your VA loan more quickly, which builds a strong road to property management for those who qualify for a VA loan. While you don’t need a down payment, if you have a specific amount saved for a down payment, a VA lender can help you determine what kind can lower your monthly payments over time and work best with your interest rates. You can also take the savings each month from your VA loan and roll them back into the loan to lead to a faster VA loan payment.
Financially, home ownership is better for your family in the long-term than renting. All the payments made to your mortgage go into home equity, which means your family will have access to funds whenever they need them. In addition, eventually, the mortgage will be paid off and your family can enjoy the home of your dreams without having to pay for it on a regular basis. This decision is the key to financial freedom and generational success. Consider it an investment in yourself, your children, and your grandchildren.
Map Your Road to Financial Success with a VA Loan Calculator
A VA loan calculator is a free tool offered by Security America Mortgage for those looking to apply for a VA loan. This tool looks at several elements to gain a fair estimate of your entire financial picture. While the estimated monthly payment provided by the tool may not be the amount you end up paying each month, it can still give an approximation so that you can start preparing for home ownership.
A VA-approved lender can help find you a more accurate VA loan payment so that you can begin applying for a VA loan with full knowledge of just how much you’ll need. Loan officers can take the estimates provided by the VA loan calculator and make them just a little more accurate, so that you know all the costs involved with your monthly mortgage payment. We’ll make sure that you know every fee that comes with getting a VA loan.
Security America Mortgage offers competitive interest rates on VA loans, and also helps borrowers understand property tax, the VA funding fee, your down payment, closing costs, and the interest rate.
Here are some elements a VA loan calculator will need to help you get started on the VA loan process.
VA Loans and the Interest Rate
Every loan comes with some level of interest rate, but a VA loan may help veterans find interest rates more suitable to their purpose. According to the VA,
“The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans.”
A VA loan calculator will look at the interest rate paid by the average homeowner in the country, but also in the region. Your interest rate will not be locked down until you sign the VA loan and make it official, but you can get an accurate estimate.
VA Loans and a Minimum Credit Score
Applicants might believe that they need a high credit score to apply for a VA mortgage loan, but the truth is that the VA loan program analyzes the full financial picture for each person, instead of simply a number. While having higher credit may impact your monthly VA mortgage payments and your interest rate in a positive way, VA home loans can help even those with bad credit forge a path to owning their own home.
Other financial institutions require a credit score of around 620 at least. Potential homebuyers typically start trying to maximize their credit score a few months before they begin applying for loans. To keep their credit score at 620 or above, they must avoid opening new credit cards, avoid closing credit cards, avoid applying for new loans, and avoid co-signing new loans.
VA Loans and Loan Terms
A home loan term can be for 15 years or 30 years, depending on the applicant’s decision. Each decision will affect your interest rate and your monthly mortgage payment, but each term has its own set of benefits and drawbacks. VA lenders can help you find the best option for you.
VA Loans Based on Military Type
A VA loan can be given to a former member of the military, a member of the national guard, or a surviving spouse. A VA loan calculator will ask what branch or type you are, which also determines your VA loan limits and in some cases, your loan amount.
VA Loan Type
Your VA loan can be used for various purposes, including VA home loans, using a VA loan for refinancing your mortgage, purchase loans, or even renovations. The VA mortgage calculator will ask you what kind of loan you are looking for and make estimates based on your response.
VA Loan Down Payment Amount
While you don’t need a down payment, your VA loan monthly payment will be much less if you put a down payment on your loan. Since closing costs and the VA funding fee are often rolled into your monthly payment, a down payment can bring this amount to something more manageable for you and your family.
VA Loan Specifics
Whether or not you pay the VA funding fee on your VA loan is dependent on your status as a veteran. A VA funding fee goes directly to the Department of Veterans Affairs so that other service members can rely on the same program. These payments keep the VA loan program running for generations to come. Those with VA disability income might be exempt from the VA funding fee, while those who have been awarded Purple Hearts or their surviving spouses are completely exempt. VA funding fee rates range between 1.4 percent and 3.6 percent and are typically wrapped up in your monthly payment.
VA Loan Property Taxes
Your VA loan comes with a stipulation: pay your property tax each year to avoid foreclosure. While you should pay your property tax regardless of whether your VA loan says so, make sure you factor this into account when it comes to looking at your monthly and annual budget.
Estimate Your VA Loan Payment with VA Lenders
Whether you’re worried about the VA funding fee or you’ve forgotten how much private mortgage insurance factors into your VA loan payment (spoiler: it doesn’t), check out Security America Mortgage’s VA loan calculator to get a better look at your loan amount, your loan term, your down payment, and your monthly mortgage payment.