The VA loan program is managed by the U.S Department of Veterans Affairs. This is a loan program exclusively provided for current and past members of the U.S military services including many reservists and those serving in the National Guard.
In addition, surviving spouses of military members killed in the line of duty or those that passed away due to an injury or disability while serving are also eligible for these loans.
Why Use A Loan Calculator?
With the VA loan program, qualifying applicants can obtain a home with zero down payment. However, by making a small down payment of even 5%, it is possible to save on closing costs, which is something that can be determined through the use of an online VA loan calculator.
There are typically more competitive interest rates offered through the VA loan program as compared to conventional loans or other loans such as the FHA program. This reduction can often be as much as 1% over conventional loan interest rates.
Using a VA loan calculator and trying different interest rates can help the potential buyer to see the value in getting lower rates. Lower rates are offered to the best-qualified buyers, including those who have top credit scores and those who can demonstrate steady income and a low debt-to-income ratio. Additionally, if the applicant has a basic allowance for housing (BAH), an active duty military applicant can use this amount as income and use the allowance for the monthly mortgage costs.
Using the VA loan calculator is a simple way to try out different options and considerations with the loan. It is accurate, easy to use and provides immediate information to assist in making the most informed decision with your loan. It can also be an effective way to see how a small change in the cost of the loan or interest rates by the lender can make a big impact on your payments over the loan term.
For more information and ideas on how to use a VA loan calculator, visit us at Guaranteed Rate. We offer hand mortgage calculators and an easy online application at Guaranteed Rate office.