Virginia Mortgage Calculator

Best mortgage lenders in Virginia

The most widely recognized mortgage lenders in Virginia have a nationwide presence. These include such recognizable names as Gateway Capital Mortgage, Morty Inc, NBKC Bank. Several lesser known but trustworthy options include Virginia-based First Meridian Mortgage Corporation, OVM Financial Inc.

How to calculate mortgage payment in Virginia

Use our fast and simple mortgage calculator VA to evaluate your future monthly expenses. Detailed step-by-step instructions follow below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Virginia for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Virginia parameters.

The first component is the home price, which represents the amount you intend to invest in your future property. A down payment is the initial sum to be paid upfront. To avoid costly insurance requirements, it's advisable to provide a minimum of 20% down payment, especially with a conventional loan. The remaining portion constitutes the principal, which equals 80% of the home price when a 20% down payment is applied.

The loan term denotes the duration within which you'll fully repay your mortgage through scheduled payments. Fixed-rate conforming loans typically extend up to 30 years, while adjustable-rate options usually feature shorter terms.

An interest rate is a fixed or variable percentage of the principal that you are obligated to pay over the loan's duration. It's important to note that you are actually charged an annual percentage rate (APR), which is not precisely the same as the interest rate. Although the interest rate comprises the major portion of the APR, the latter also encompasses various fees such as origination fees, closing costs, and insurance payments, among others.

For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Virginia, given a $400,000 home price and a 10% down payment.

Median property taxes in Virginia counties

Property tax is another crucial factor to take into account when choosing your future home. Numerous lenders require the establishment of a mortgage escrow account to guarantee that the borrower remains current with both tax and insurance expenses.

Source: American Communities Survey 2016, U.S. Census

Virginia Housing Market 2024

Over the past year, there has been a significant rise in the housing market's value within Virginia. This trend has been consistent and was further accentuated by the COVID-19 pandemic, as many individuals sought more spacious and comfortable living environments. However, it's worth noting that the rate of growth has slowed compared to the previous year, indicating a potential stabilization of the market.

How do I calculate my mortgage payment?

The most convenient way to do this is to make use of our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid by hand:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Virginia

To begin, there are several federal agencies, namely the USDA, FHA, and VA, that offer loan guarantees to eligible borrowers. These programs cater to the needs of many first-time homebuyers, providing options that align with their budgets.

Besides these government-guaranteed programs, it is worth considering some offers from UHC (Virginia Housing Corporation) available to Virginians. In particular, first-time home buyers can apply for FirstHome – down payment and closing costs assistance program, if they qualify for a FHA loan and their FICO score is at least 660. This option covers up to 6% of the loan amount toward down payment and/or the closing costs. It is important to note that this option comes in the form of a 30-year-fixed-rate second loan only. If you do not qualify for the FirstHome program, do not despair. Virginia Housing Score Loan is an alternative program that covers up to 4%. The minimum satisfactory credit score is 620.

In addition to the previously mentioned tips and programs, here are some further considerations for first-time homebuyers:

1. Budget Wisely. Before embarking on your homebuying journey, create a comprehensive budget that takes into account not only the cost of the home but also ongoing expenses such as property taxes, homeowners' insurance, utilities, and maintenance. This will help you determine a comfortable price range for your new home.
2. Understand Mortgage Types. Familiarize yourself with various mortgage types, including fixed-rate and adjustable-rate mortgages. Each type has its own advantages and disadvantages, so choose the one that aligns best with your financial goals and risk tolerance.
3. Shop Around for Lenders. Don't settle for the first lender you come across. Shop around and obtain quotes from multiple lenders to find the most favorable terms, interest rates, and closing costs. This can potentially save you thousands of dollars over the life of your loan.
4. Home Inspection. Invest in a thorough home inspection before finalizing your purchase. A qualified inspector can uncover any hidden issues with the property, allowing you to make informed decisions and negotiate repairs or price adjustments if needed.
5. Explore Homebuyer Education Programs. Many states and organizations offer homebuyer education programs that can provide valuable insights and guidance throughout the homebuying process. These programs can help you become a more informed and confident homebuyer.
6. Consider Long-Term Goals. Think about your long-term goals when selecting a home. Will this property meet your needs for the foreseeable future? Consider factors such as location, school districts, and potential for resale value.
7. Seek Professional Guidance. Consider consulting with a real estate agent, financial advisor, or attorney who specializes in real estate transactions. Their expertise can be invaluable in ensuring a smooth and successful home purchase.
8. Plan for Closing Costs. Don't forget to budget for closing costs, which typically include fees for appraisal, title insurance, attorney services, and more. It's essential to have the necessary funds available when closing on your new home.
9. Be Patient. The homebuying process can be complex and may take time. Be patient and avoid rushing into a decision. Take your time to find the right property that meets your needs and aligns with your financial goals.

By following these additional tips and considering the various aspects of the homebuying process, you can increase your chances of making a well-informed and successful home purchase in Virginia.