Monthly maintenance and utilities expense is a financial metric that's unique to VA loans. It's calculated by multiplying your home's square footage by 14 cents. If your maintenance and utilities expenses are too high relative to your gross income, you may not qualify for a VA loan. Mainten...
Calculate Loan Payments If you’ve been approved for a specific loan amount and interest rate, you can figure out your payments easily. You can then see if you should shop around for a better rate, need to reduce your loan amount, or should increase the number of payments. For this, y...
When you take out a loan, your lender will calculate the payment that you will need to make each month to pay off your loan over a set period of time. Each monthly payment goes partly toward paying off the interest that accrues on the loan and partly toward paying down the principal yo...
How to calculate simple interest on a loan If a lender uses the simple interest method, it’s easy to calculate loan interest. You will need your principal loan amount, interest rate and loan term to calculate the overall interest costs. The monthly payment is fixed, but the interest you...
How to Calculate the Loan-to-Value Ratio Interested homebuyers can easily calculate the LTV ratio of a home. This is the formula: LTVratio=MAAPVwhere:MA=Mortgage AmountAPV=Appraised Property Value\begin{aligned} <V ratio=\frac{MA}{APV}\\ &\textbf{where:}\\ &MA = \text{Mortgage Amount...
To calculate how many payments you’ll make in your loan term, multiply the number of years by 12. Car loans are a type of amortizing loan. Let’s say you took out an auto loan for $20,000 with an APR of 6 percent and a five-year repayment timeline. Here’s how you would ...
Keep in mind that economic conditions can have a negative impact on home values regardless of improvements you make to your home.Now that you know how to calculate your loan-to-value and combined loan-to-value ratios and how you can impact them, you can make more informed choices to help...
High LTV ratios are generally associated with higher-risk loans, which can drive the interest rate up and cause an applicant to be rejected. If a borrower requests a loan for an amount that is close to or equal to the appraised value of the home, resulting in a very high LTV ratio, a...
Keep in mind that economic conditions can have a negative impact on home values regardless of improvements you make to your home.Now that you know how to calculate your loan-to-value and combined loan-to-value ratios and how you can impact them, you can make more infor...
Which type of VA loan do you need to purchase a house? Can I get a certificate of eligibility for a VA loan? What Is a VA Loan and How Does it Work? VA loans are issued by private lenders and guaranteed by the Department of Veterans Affairs. If the borrower defaults on the loan, ...