What Determines Your VA Loan Mortgage Payments?

The Home Loan Guaranty Scheme of the Department of Veteran Affairs (VA) has been hugely popular among the military homebuyers of America.  VA loans are comparatively cheaper than conventional loans and they also come with a host of other advantages for military homebuyers. If you are current or a past member of the United States Military, you can get a VA Loan from a private lender where the loan itself would be backed by the VA.  Now most people who want to get a VA home loan are often worried about the monthly payments they need to pay for the mortgage. Most of them don’t have a good idea about this issue and hence they are confused at the beginning itself. Here, in this post we would be looking at the factors that determining the monthly payments.

It is a commonly known fact that the monthly payments depend on the rate of interest. Therefore, Veterans Mortgage Rates would decide the payment you have to make every year.  So let us take at the factors that determine the VA interest rate-

The down-payment – The VA does not require you to make any down-payments. However, making down-payments would reduce the interest rate. If you pay a higher down payment, you would need to pay less interest.

The duration of the loan – VA loans generally come with a repayment period of either 15 years or 30 years. The more the duration of the loan would be, the less would be the interest rate.

The VA Funding Fee – The department of VA charges a funding fee from each borrower so to keep the program running. You can pay the VA funding fee upfront or you can roll it into your loan. The VA Funding Fee depends upon a lot of factors.

You can use a veterans mortgage calculator to find out the rate of interest you would be paying. Better still, you can get in touch with a professional VA loan specialist. The leading VA Loan Lenders would have a team of specialist who would help you to understand the process and your interest rates. They would even help you get VA loans with ease.