Due to the diligence of the Department of Veterans Affairs, all states and all legally-acting mortgage companies now carry a different set of rules for veterans. Although these rules still need some updating, the fact that lenders cannot simply raise interest rates on a whim anymore, and also that they must use different lending standards, are steps in the right direction. However, veterans still need to calculate their loans like everyone else.
VA home loan rates calculator
This might require the use of a VA home loan rates calculator to determine the size of the loan you need, as well as the interest rates, and other aspects of the loan. A VA mortgage calculator works like any other mortgage calculator, only it takes the VA label into account before giving its final estimates.
Before you start using a calculator, you have to realize that the results are based on the interest rates you enter based on the company and loan package you’re thinking about choosing. The calculator isn’t like a car insurance quote; it’s most literally a way to calculate what your monthly payments will be for X, and how they may adjust for Y.
Step One: Determining the Budget
The first step is to determine how much of a budget you have, including your down payment (take into account any VA assistance here), your means of repayment, etc. The next step is to focus on the type of loan you want – a 30-year adjustable rate, a 20-year fixed rate, etc. 30-year VA loans are the standard.
Step Two: Interest Rate
Now the next step is to enter an interest rate. For example, if you stop by a few sites, like Mortgage Loans which is offering veterans a 30-year loan for around 2.751% APR, you’ll enter this rate and subsequently calculate what your monthly payments are going to be.
Tip: Once you know how much you can afford to repay, you will then be able to narrow your loan options to find something you can afford.