VA Mortgage Calculator

What Is the Monthly Payment on a VA Mortgage?

A VA mortgage payment typically includes principal, interest, property taxes, and homeowner insurance - but never private mortgage insurance. Enter the home price, any optional down payment, interest rate, and loan term in the calculator above to see the monthly payment, funding fee amount, and the no-PMI confirmation. The absence of PMI is the ongoing benefit that makes VA mortgages consistently cheaper month-to-month than conventional alternatives, even when the purchase prices are identical.

VA Mortgage Payment vs Conventional at Same Home Price

$350,000 home. VA loan: $0 down, 6.25% rate, no PMI. Monthly P&I: $2,155. Funding fee ($7,525) financed adds $46/month. Taxes ($292) and insurance ($125): total $2,618/month. Conventional: 5% down ($17,500), 6.75% rate, PMI ($194/month). Loan $332,500. P&I: $2,157. PMI $194. Taxes $292. Insurance $125. Total: $2,768/month. The VA mortgage costs $150 less per month despite financing the entire purchase price and the funding fee. Over 10 years: $18,000 less. The VA borrower also keeps $17,500 cash that the conventional borrower spent on the down payment, available for investment or emergency reserves.

VA IRRRL: Interest Rate Reduction Refinance Loan

The VA Streamline Refinance (IRRRL) is the fastest and simplest way to lower your VA mortgage rate. Requirements: the loan being refinanced must be a VA loan. You must show a net tangible benefit (typically 0.5%+ rate reduction). No appraisal or income verification required. The IRRRL funding fee is only 0.5% (compared to 2.15% on purchase loans). Closing costs are minimal and can often be rolled into the new loan. Processing time: 2-4 weeks. An E-7 with a $300,000 VA mortgage at 7.5% refinancing to 6.5% via IRRRL: payment drops $193/month. Funding fee: $1,500 financed. Breakeven: under 8 months. The IRRRL is specifically designed for simplicity and speed.

VA Cash-Out Refinance

VA cash-out refinancing allows borrowing up to 100% of the home value - higher than any other loan program. A $400,000 home with a $280,000 balance: conventional cash-out allows up to $320,000 (80% LTV), providing $40,000 cash. VA cash-out allows up to $400,000 (100% LTV), providing $120,000 cash. The VA cash-out can also be used to refinance a non-VA loan into a VA loan, which is the only way to convert a conventional or FHA mortgage to VA and capture the no-PMI benefit. The funding fee on VA cash-out is 2.15% (first use) or 3.3% (subsequent), higher than IRRRL but still economical given the program advantages.

Native American Direct Loan (NADL) Program

The NADL program provides VA-direct home loans (not through private lenders) to eligible Native American veterans or non-Native veteran spouses for homes on Federal Trust Land. Benefits include: no down payment, no PMI, no funding fee, fixed rate (currently lower than standard VA rates), and reduced closing costs. This is one of the most generous homeownership programs available and is uniquely accessible only through the VA direct lending program. Eligible veterans should contact their regional VA Loan Center for application details and property eligibility on trust lands.

VA Mortgage Assumption

VA loans are assumable, meaning a qualified buyer can take over your mortgage at the existing interest rate and terms. In a rising-rate environment, a VA loan at 4% originated in 2021 is extremely valuable to assume because current rates may be 6-7%. The assuming buyer inherits the below-market rate, and the selling veteran can have their entitlement restored once the new borrower substitutes their own VA entitlement (if they are VA-eligible) or once the loan is fully paid. Assumption requires lender approval and the new borrower must qualify on income and credit. A 0.5% assumption fee replaces the standard funding fee.

VA Mortgage and Disability Exemptions

Veterans with a service-connected disability rating of 10% or higher are exempt from the VA funding fee - saving $5,000-$12,000 on a typical loan. This exemption applies even if the disability rating is received after closing (in which case, the veteran can request a refund of the funding fee paid). Additionally, many states offer property tax exemptions for disabled veterans, reducing the ongoing monthly escrow amount. A 100% disabled veteran in Texas: no property tax on a homesteaded property. In Virginia: property tax exemption up to $10,000 for 100% disability. These combined benefits make VA mortgage costs extraordinarily low for disabled veterans.

Common VA Mortgage Myths

Myth: VA loans are only for first-time buyers. Reality: the benefit can be used unlimited times with restored entitlement. Myth: VA loans take longer to close. Reality: average VA closing time is 45-50 days, comparable to conventional (40-45 days). Myth: sellers do not like VA offers. Reality: VA offers are backed by a government guarantee and VA buyers are often highly qualified. Myth: VA loans are only for low-priced homes. Reality: there is no loan limit for veterans with full entitlement. Myth: the VA loan benefit expires. Reality: the entitlement never expires - a veteran who served in the 1970s can use it today for the first time. Each myth creates unnecessary hesitation that causes eligible veterans to choose inferior financing options.

Frequently asked questions