Using the tools available to help understand loan options is always a wise choice when buying a home. Even though a VA loan offers a lot of benefits over conventional types of loans, it is still important to understand the short and long-term costs to pay off the loan as well as the amount needed to maintain the home.
One tool that is very easy to use is a VA mortgage calculator. These can be found on most lenders’ sites, particularly those companies approved to process VA loans. While some people assume only active duty military or veterans are able to access a VA loan, this is not the case. Surviving spouses of military members or spouses of disabled veterans as well as many National Guard members as well as reservists may qualify for these loans.
Using the Calculator
In some ways, the VA mortgage calculator is easier to use than a loan calculator for a standard 15 or 30 year fixed loan or an adjustable rate loan. The VA loan process typically does not require a down payment on the purchase, which means there is limited need to consider the various possibilities by increasing or decreasing the amount.
However, if the applicant is using savings for the purchase, simply deduct that amount from the initial loan amount used in the calculator. For example, if the home is $230,000 and the applicant is using $30,000 of savings for the purchase, the loan amount used in the VA mortgage calculator would be $200,000.
Additionally, the calculator will allow changes to the loan term as well as the interest rate. Some also provide the option to calculate how additional payments per month or on an annual basis will impact the payment costs and loan duration.
At Guaranteed Rate, our experienced lenders can provide information and support for VA loans. Using the VA mortgage calculator at Guaranteed Rate can provide a clear picture of what to expect in payments over the term of the mortgage.