VA Mortgage Calculator

How the VA Funding Fee Works

Most VA loans don't require a down payment or monthly PMI, but nearly all borrowers pay a one-time VA funding fee that helps keep the program self-sustaining for taxpayers. The fee is a percentage of the loan amount and depends on two things: whether this is your first time using your VA entitlement, and how much you're putting down. First-time use with no down payment runs 2.15%, dropping to 1.5% with at least 5% down and 1.25% with at least 10% down. Subsequent use with no down payment is higher, at 3.3%, but drops to the same 1.5% and 1.25% tiers once you put 5% or 10% down. Veterans receiving VA disability compensation are typically exempt from the fee entirely — this calculator assumes these standard, published rate tables and lets you pick "Exempt" if that applies to you. Most borrowers choose to roll the fee into the loan balance rather than pay it in cash at closing, which this calculator handles as the default.

No PMI, But Don't Forget Taxes and Insurance

Because VA loans don't carry private mortgage insurance regardless of down payment size, your monthly payment is usually lower than a comparable conventional loan at the same price point. That said, property tax, homeowners insurance, and any HOA dues still apply and are included in the total monthly payment above. If you're weighing a VA loan against a conventional option, run the same numbers through the mortgage calculator to compare the PMI cost against the VA funding fee.

Rolling the Fee In Costs More Over Time

Financing the funding fee is convenient because it avoids an out-of-pocket cost at closing, but it also means you pay interest on that fee for the life of the loan. If you have the cash available, paying the funding fee upfront reduces your financed amount and total interest paid — compare both options above by switching the "Funding Fee" dropdown. For a closer look at how extra payments or a shorter term could offset that added interest, try the amortization calculator.