VA Mortgage Calculator: Helping you Make the Most of your VA Loan Benefits!

 
A VA mortgage calculator can help to insure that you receive the maximum benefits available through the VA mortgage program. While the VA mortgage contains numerous benefits and advantages, there are also various choices. By using the features of a VA mortgage calculator you can be sure that you receive the maximum amount of benefits available.

VA Mortgage: What is it?
The VA mortgage is a benefit that was created by the Veterans Administrative mortgage loan program in 1944 as part of what eventually became the GI Bill of Rights. The purpose of this program was to assist veterans returning home from war in purchasing homes. One of the biggest assets to this program is that it did not require a down payment; a big hindrance to veterans who were returning home without substantial cash reserves to put down on a home of their own. Through this system they were able to become home owners much faster.
Over the past 60+ years, there have been some changes take place in the program, but the premise is still much the same. In addition to no down payment, individuals who are eligible for a VA mortgage can take advantage of:

• Equal opportunity for all qualified veterans to obtain a VA loan.
• No down payment is required in most cases. (The maximum loan amount may not exceed the VA appraised value of the home).
• Ability to finance the VA funding fee.
• Closing costs may be lower than other financing methods.
• No monthly private mortgage insurance to pay.
• Limitation on buyer's closing costs. (seller can pay all cost)
• Mortgage may be prepaid without penalties.
• A real estate appraisal which informs the buyer of the property value and potential problems.
• A warranty from the builder and assistance from VA to obtain cooperation of the builder for homes inspected by the VA during construction.
• VA loans are fully assumable by anyone (including non-veterans), subject to VA approval of the assuming individual's credit.

Documentation Needed
Before you begin the process of getting your VA mortgage loan started, you’ll also need to have the correct documentation. This includes:

• DD214
• Social security number
• Gross monthly salary
• Bank account information

Look Before You Leap
Before you sign on the dotted line, there are a few things you’ll need to know about the VA mortgage program and how it works in regards to the maximum amount of money you can borrow for a home loan.
This is where a VA mortgage calculator can come in handy. For example, the amount of money that you can borrow on a VA mortgage loan shifts depending on the amount of your down payment.
Remember that you are not required to make a down payment on a VA mortgage loan but the amount of money that you can borrow is limited with no down payment.
Using a VA mortgage calculator you can determine the amount of money you might be able to borrow with a down payment. 

Built in Benefits
As your VA mortgage loan progresses, you might encounter a situation in which you find that you are no longer able to meet the mortgage payment or would perhaps like to take advantage of a lower interest rate.
Using a VA mortgage calculator and the opportunity to apply for an interest-rate reduction loan through the VA Streamline Refinancing Program you can determine how you would be able to refinance your loan at a lower rate.

VA Fixed Rate vs. Other VA Programs
A VA mortgage calculator can also prove to be beneficial if you are trying to decide between a traditional fixed payment mortgage and a graduated payment mortgage. With a traditional fixed payment mortgage you pay toward a constant principle and interest rate over a period of 15, 20, 25 or 30 years.
A graduated payment mortgage has low payments in the beginning that eventually rise to a level payment beginning in the sixth year.
You might also be interested in a growing equity mortgage, in which gradually increasing payments where all of the increase is applied toward the principle.
While there are advantages and drawbacks to each of these payment plans, a VA Mortgage Calculator can help you to determine which one is right for you and your circumstances.