This calculator is designed to help you estimate your potential monthly Principal & Interest (P&I) payment for a VA home loan, as well as the VA Funding Fee, which is a one-time charge required by the Department of Veterans Affairs to support the VA Home Loan Program. USAA, a trusted financial institution serving the military community, often offers competitive VA loan options. This tool provides a quick way to get an idea of your mortgage costs.
How VA Loans Work with USAA
VA loans are a benefit guaranteed by the U.S. Department of Veterans Affairs, making it easier for eligible service members, veterans, and surviving spouses to purchase homes. Key features often include no down payment requirement (for most borrowers), no private mortgage insurance (PMI), and competitive interest rates. USAA is a popular choice for these loans due to their understanding of military life and commitment to service members.
The VA Funding Fee
The VA Funding Fee is a crucial component of the VA loan program. It's a percentage of the loan amount that helps the VA cover its losses on defaulted loans, thus keeping the program running for future veterans.
Percentage: The fee typically ranges from 0.5% to 3.6% of the loan amount, depending on factors like service type, whether it's a first-time or subsequent use of the benefit, and the amount of down payment (if any).
First-Time Use: Usually has a lower fee percentage than subsequent uses.
Down Payment: Making a down payment can reduce the funding fee.
Exemptions: Some veterans receiving VA compensation for service-connected disabilities are exempt from the funding fee.
Note: For this calculator, we use a common rate for first-time users without a down payment, but the actual fee can vary. Always consult with your USAA loan officer for the precise fee applicable to your situation. The funding fee can be financed into the loan amount.
The monthly payment for Principal and Interest (P&I) is calculated using the standard mortgage payment formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment (Principal & Interest)
P = The principal loan amount (Home Purchase Price – Down Payment)
i = Your monthly interest rate (Annual Interest Rate / 12 / 100)
n = The total number of payments over the loan's lifetime (Loan Term in Years * 12)
How to Use This Calculator
Home Purchase Price: Enter the total price of the home you intend to buy.
Down Payment: If you plan to make a down payment, enter that amount. For many VA loans, this can be $0.
Annual Interest Rate: Input the estimated annual interest rate for your VA loan. This is a key factor in your monthly payment.
Loan Term (Years): Select the duration of your loan, typically 30 years for VA loans, but 15 or 20 years are also options.
VA Funding Fee: Enter the estimated percentage for the VA Funding Fee. A common rate for first-time use without a down payment is used as a default, but this can vary.
Calculate: Click the "Calculate" button.
The calculator will display your estimated monthly Principal & Interest payment and the calculated VA Funding Fee amount (which is based on the net loan amount after any down payment). Remember, this estimate does not include property taxes, homeowner's insurance, or potential HOA dues, which will be added to your total monthly housing expense.
Disclaimer: This calculator provides an estimate for informational purposes only. It is not a loan offer or a guarantee of loan approval. Rates and fees are subject to change and depend on individual circumstances and lender policies. Consult directly with USAA or another qualified lender for precise loan terms and figures.
function calculateLoan() {
var homePrice = parseFloat(document.getElementById("homePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseInt(document.getElementById("loanTerm").value);
var vaFundingFeePercentage = parseFloat(document.getElementById("vaFundingFee").value);
var monthlyPaymentElement = document.getElementById("monthlyPayment");
var fundingFeeDisplayElement = document.getElementById("fundingFeeDisplay");
// — Input Validation —
if (isNaN(homePrice) || homePrice <= 0) {
alert("Please enter a valid Home Purchase Price.");
return;
}
if (isNaN(downPayment) || downPayment homePrice) {
alert("Down Payment cannot be greater than the Home Purchase Price.");
return;
}
if (isNaN(interestRate) || interestRate <= 0) {
alert("Please enter a valid Annual Interest Rate.");
return;
}
if (isNaN(loanTerm) || loanTerm <= 0) {
alert("Please enter a valid Loan Term in Years.");
return;
}
if (isNaN(vaFundingFeePercentage) || vaFundingFeePercentage 0) {
monthlyPayment = totalLoanAmountWithFee * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// Handle zero interest rate case (though unlikely for mortgages)
monthlyPayment = totalLoanAmountWithFee / numberOfPayments;
}
// — Display Results —
monthlyPaymentElement.innerText = "$" + monthlyPayment.toFixed(2);
fundingFeeDisplayElement.innerText = "VA Funding Fee: $" + fundingFeeAmount.toFixed(2);
}