Understanding the va mortgage calculator
VA loans, guaranteed by the Department of Veterans Affairs for eligible service members and veterans, are among the most favorable mortgages available: no down payment is required and no monthly mortgage insurance is charged. In exchange, most borrowers pay a one-time VA funding fee 2.15% of the loan for a first-time use with nothing down, less if you make a down payment.
Because there's no PMI, a VA loan's monthly payment is often lower than a comparable conventional or FHA loan even at the same rate. The funding fee can be financed into the loan (as modeled here) or paid at closing, and certain veterans including those with service-connected disabilities are exempt from it entirely.
Results are estimates for education only and are not financial advice.