As essential VA loans are for the borrowers, the importance of home loan calculators is impossible to overlook in their lives. The mortgage is exclusively crafted for the military service members and members. With no down payment and low-interest rate, the home loan has soared high to popularity. But the age-old question still remains, can you afford the mortgage?
To help the active-duty military members and veterans, the use of home loan calculator Texas is noteworthy. The mortgage is partially insured by the Department of Veterans Affairs for protecting the lenders. So, the mortgage calculator helps in a lot of ways! The online tool is an effective option to estimate monthly loan payments. It is possible to look at the bigger picture and check how you will deal with the monthly VA loan payments. Ask the private lender whether you are required to pay the closing costs. If you can gather information on the appraisal fee, origination fee, and discount points, you can walk through the process easily. Here is a quick look at how you should use the home loan calculator for VA loans in Texas.
Understanding how Home Loan Calculator Works
Start the process by filling a few details including loan interest, the purchase price of the home, loan term (30 years or 15 years), and down payment. The down payment is typically zero and you may mention the same in the required section. After filling out the necessary fields, you can check an approximate estimation of the monthly payment. You can ask the lender if it is possible to make additional payments yearly or half-yearly. This helps a lot to lower down the interest rate over the course.
Trying out Different Scenarios
The results of the home loan calculator reveal a more cost-effective option. Is it better to choose a 15-year term or 30-year term? The home loan offers you the choice of picking the loan term; hence, the answers are in your palm within seconds. Generally, a 30-year fixed mortgage has a lower monthly payment but the interest rate is high. On the other hand, a 15-year fixed mortgage has a higher monthly payment than the 30-year fixed mortgage yet you will have less interest. So, the home loan calculator finds out which one you can afford.
Find out the Impact of VA Funding Fee
VA funding fee refers to a one-time payment to the VA or the Department of Veterans Affairs. This is done to fund the loan program. The loan amount, different charges on services, and other fees are included in the VA funding fee. This is often rolled into the monthly payments or paid during closing. However, veterans with service-related disabilities are exempted from the fee.
So, you can guess how a home loan calculator speaks of many things about the VA mortgage which you are about to choose. You can seek help from a professional lender and check whether you are eligible for the VA loan benefits. Remember, the loan rates depend on the external factors so you can only get an estimated price.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.