Becoming a homeowner is a big deal. It’s an investment in your future, but that investment doesn’t always come cheap. For most people, one of the hardest parts of buying a house whether you’re using a conventional mortgage or VA mortgage loans to finance the purchase is figuring out how much you can reasonably afford to spend on a house. To do this, you’ll want to figure out what your payments will be for each potential loan you’re considering. Our mortgage calculator takes the stress out of the process. Here’s how to get the most out of it.
Enter Your Preferred Home Price
If you’re getting serious about buying a house, you likely have an idea of what your price range is. Enter your estimated home price into the field. This number will determine the total value of the interest payment that you’ll owe each month.
Consider How Long You’ll Keep the Loan
VA mortgage loans are available with different length terms. If you want the smallest payment each month, you’ll want to choose a 30-year mortgage. If you want to pay the loan off faster and can handle a higher payment each month, a 15-year mortgage will work best. Select your preferred loan term to see what each option will end up costing you.
Figure Out Your Interest Rate
Interest rates can change by the month, so you’ll want to look at the interest rates you’ll likely qualify for when figuring out your monthly payment. For buyers using VA mortgage loans, the interest rates will fall at or below standard mortgage interest rates, but the exact rate you’ll qualify for will largely depend on your income and credit score. If you’ve gotten quotes, use those estimated interest rates in your calculation.
Consider Your Down Payment
You’re not required to make a down payment when you buy homes with VA mortgage loans. Instead, you’re able to finance the full purchase price of the house. However, you will end up with a lower monthly payment if you can afford to put down at least a little money. The more you put down, the less you’ll borrow and the smaller your mortgage payment will be.
Let the Calculator Do the Work
Once you have the information entered into each field, the payment calculator will estimate your monthly mortgage payments. This can help you figure out which VA mortgage loans are in your best interest and how much of a home you can truly afford.
When you’re ready to apply, reach out to our team!