Estimate the closing costs associated with your VA loan.
$
%
Years
%
$
$
$
$
$
%
Understanding VA Loan Closing Costs
VA loans are a fantastic benefit for eligible service members, veterans, and surviving spouses, offering competitive rates and often no down payment. However, like all mortgages, they come with closing costs – fees paid at the end of the transaction to finalize the loan. This calculator helps you estimate these costs specifically for a VA loan.
VA loans have some unique closing cost components, most notably the VA Funding Fee. While the VA Funding Fee is a significant part of the loan, it can often be financed into the loan amount, and some veterans may be exempt from paying it.
Key Closing Cost Components for VA Loans:
Origination Fee: Charged by the lender to process the loan. VA limits this fee to 1% of the loan amount.
Appraisal Fee: Covers the cost of an independent appraisal to determine the property's market value.
Title Insurance: Protects the lender and you against any title defects or claims.
Recording Fees: Charged by local government to record the mortgage and deed.
Credit Report Fee: Covers the cost of obtaining your credit report.
VA Funding Fee: A one-time fee paid to the Department of Veterans Affairs to help keep down the cost of the loan for taxpayers. The fee varies based on the down payment amount, service type, and whether it's a first-time use. For this calculator, you can input the estimated percentage or leave it blank if you expect to be exempt or finance it into the loan separately.
Escrow Deposit: This is not technically a closing cost but a prepaid amount for property taxes and homeowner's insurance that will be held by your lender in an escrow account. You'll typically pay 3-6 months of PITI (Principal, Interest, Taxes, and Insurance) upfront.
Discount Points: Optional fees paid directly to the lender at closing in exchange for a reduced interest rate.
Other Lender Fees: May include processing fees, underwriting fees, flood certification, etc. These are often bundled into the origination fee.
How the VA Funding Fee is Calculated:
The VA Funding Fee is a percentage of the loan amount. The exact percentage depends on several factors, including:
Type of Loan: Purchase, refinance, etc.
Service Status: Regular military, National Guard/Reserves, veteran, etc.
Down Payment: Whether a down payment is made and its size.
Prior Use: If this is the veteran's first time using their VA loan benefit.
For example, for a regular military borrower using their benefit for the first time on a purchase with no down payment, the funding fee is typically 2.15% (as of recent guidelines, but subject to change). For subsequent uses, it might be 3.3%. Veterans with a service-connected disability are generally exempt. Always check the latest VA guidelines or consult with your loan officer for the precise rate.
Estimated Calculation Logic:
This calculator estimates closing costs by summing:
Lender's Origination Fee (capped at 1% of loan amount, as per VA limits)
Appraisal Fee
Title Insurance Fee
Recording Fee
Credit Report Fee
VA Funding Fee (calculated as percentage of loan amount, if entered)
Escrow Deposit (as entered)
The total estimated closing cost is the sum of these components. Remember, this is an estimate, and actual costs may vary. It's crucial to review your official Loan Estimate and Closing Disclosure from your lender for precise figures.
function calculateClosingCosts() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseInt(document.getElementById("loanTerm").value);
var originationFeeRate = parseFloat(document.getElementById("originationFeeRate").value) / 100;
var appraisalFee = parseFloat(document.getElementById("appraisalFee").value);
var titleInsuranceFee = parseFloat(document.getElementById("titleInsuranceFee").value);
var recordingFee = parseFloat(document.getElementById("recordingFee").value);
var creditReportFee = parseFloat(document.getElementById("creditReportFee").value);
var escrowDeposit = parseFloat(document.getElementById("escrowDeposit").value);
var vaFundingFeeRate = parseFloat(document.getElementById("vaFundingFee").value) / 100;
var totalClosingCosts = 0;
var errorMessage = "";
// Input validation
if (isNaN(loanAmount) || loanAmount <= 0) {
errorMessage += "Please enter a valid Loan Amount.\n";
}
if (isNaN(interestRate) || interestRate < 0) {
errorMessage += "Please enter a valid Interest Rate.\n";
}
if (isNaN(loanTerm) || loanTerm <= 0) {
errorMessage += "Please enter a valid Loan Term in years.\n";
}
if (isNaN(appraisalFee) || appraisalFee < 0) {
errorMessage += "Please enter a valid Appraisal Fee.\n";
}
if (isNaN(titleInsuranceFee) || titleInsuranceFee < 0) {
errorMessage += "Please enter a valid Title Insurance Fee.\n";
}
if (isNaN(recordingFee) || recordingFee < 0) {
errorMessage += "Please enter a valid Recording Fee.\n";
}
if (isNaN(creditReportFee) || creditReportFee < 0) {
errorMessage += "Please enter a valid Credit Report Fee.\n";
}
if (isNaN(escrowDeposit) || escrowDeposit 0 && (isNaN(originationFeeRate) || originationFeeRate 0) {
if (isNaN(vaFundingFeeRate) || vaFundingFeeRate < 0) {
errorMessage += "Please enter a valid VA Funding Fee percentage.\n";
} else {
calculatedVaFundingFee = loanAmount * vaFundingFeeRate;
}
} else {
// If VA Funding Fee is not entered, assume it's not applicable or handled differently
// For estimation, we won't add it if the rate isn't provided.
// In a real scenario, you'd prompt the user or use defaults.
}
if (errorMessage !== "") {
document.getElementById("result").innerHTML = errorMessage;
return;
}
// Summing up the costs
totalClosingCosts = calculatedOriginationFee + appraisalFee + titleInsuranceFee + recordingFee + creditReportFee + escrowDeposit + calculatedVaFundingFee;
// Display result
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2,
});
document.getElementById("result").innerHTML = "Estimated Closing Costs: " + formatter.format(totalClosingCosts) + "";
}