Virginia Mortgage Calculator

Virginia housing market 2023

The housing market in Virginia has jumped by 4.3% year over year in July 2023, with the average single-family home sale coming in at $452,900. At the same time, the number of homes sold fell by 21.2% and the number of homes for sale fell 21.6%. With such drastic drops in the housing supply, leaving just two months' worth for buyers to choose from, housing shortages will likely remain throughout 2023.

In addition, 47.8% of all home types sold above their listing price in July 2023, resulting in an average sales price of over 100% of the listing price. 

This is no surprise to anyone already living in Virginia, as the state has been experiencing dramatic growth in home values for years. In July 2020, housing prices started climbing more than usual, and have largely continued that pattern. The lack of inventory won't be cooling the Virginia market anytime soon. You'll definitely want to check rates with the best rated mortgage lenders to ensure you're making the most of your buying dollars.

How do I calculate my mortgage payment?

We recommend using our Virginia mortgage calculator. The formula to calculate by hand is quite complex. It looks like this:

To calculate your monthly mortgage payments in Virginia, enter your estimated mortgage loan amount, the term of your loan, and the rate you think you'll be eligible for. The term of your loan is the number of years you have to repay your mortgage. Keep in mind the higher your credit score, the more likely you'll be to get the most competitive rate available.

In addition to the principal and interest, you will need to add monthly insurance costs, taxes, and other fees. Property taxes and origination fees are sometimes rolled into the loan. Our Virginia mortgage calculator also allows you to add taxes and insurance to your monthly payment.

The mortgage calculator for Virginia also has an option to enter your down payment amount. The more you put down, the less you will need to borrow and the lower your monthly mortgage payments will be.

What other costs do I have to pay?

There are other monthly expenses you'll need to account for, like homeowners insurance and property taxes. When you use our mortgage calculator for Virginia, remember that property taxes paid as a percentage of owner-occupied homes are on average 0.74%. Property taxes may change based on your county.

Homeowners may also be part of a homeowners association (HOA) and have to pay a monthly HOA fee on top of their mortgage payment. HOA fees usually cover the maintenance of common areas, and often include services like trash pickup. To enter these additional costs into the above mortgage calculator for Virginia, just click "Additional inputs" (below "Mortgage type").

You may also need to account for private mortgage insurance (PMI). Homeowners will have to pay PMI if they don't make at least a 20% down payment on their home. With all these potential costs, it is helpful to use our Virginia home loan calculator. Our tool will help break down your costs so you can see what your monthly mortgage payments will look like in different scenarios. If you want to refinance an existing mortgage, our Virginia mortgage calculator can also help you determine your monthly payment -- and you can check out our list of the best refinance lenders to get that process started.

Things to know before buying a house in Virginia

Before you buy a home in Virginia, it's important to make sure you have your finances in order. You will need:

• A good credit score
• A low debt-to-income ratio
• A steady source of income
• A down payment
• Additional money outside of your down payment to cover ongoing maintenance, repairs, and other emergencies

There are also some specific issues you should be aware of when buying a home in Virginia. Virginia is very diverse. Virginia has thousands of miles of coastline, beautiful rivers, and the Appalachian trail. Home prices vary wildly across the state, with homes in the D.C. metro area, which includes Arlington and Alexandria, going for a median price of $557,200 in the first quarter 2023, while those in the Virginia Beach area had a median home price of $313,200.  

Due to Virginia's geography, Virginia is no stranger to tropical storms and hurricanes. In addition to numerous types of storms, with 2,900 dams and four major rivers flowing through the commonwealth, Virginia is prone to flooding. It is important to be informed of the impact severe weather can have on the area you are interested in.

Tips for first-time home buyers in Virginia

Here are some important tips for first-time home buyers in Virginia. There are several programs available for first-time home buyers through the Virginia Department of Housing and Community Development (DHCD) and the Virginia Housing Development Authority. The Virginia DHCD offers the HOMEownership Down Payment and Closing Cost Assistance program (DPA).

The DPA provides flexible financing for first-time home buyers below a certain income level with down payment assistance. An eligible home buyer may receive a grant up to 10% or 15% of the house's sales price, plus up to $2,500 to pay for closing costs.

First-time home buyer loans and programs

Here are other first-time home buyer programs that homeowners can consider:

• FHA loans are mortgages back by the Federal Housing Authority and require a 3.5% down payment.
• VA loans are for military service members and require a 0% down payment.
• USDA loans are government-backed loans for eligible properties and require a 0% down payment.
• Fannie Mae and Freddie Mac are conventional loans that require a 3% down payment.

Decide on a home-buying budget

Once you have decided on the best program and have shopped around with different lenders, it is important to decide on a home-buying budget. Many experts recommend your monthly house payment (including additional costs) be no more than 30% of your monthly income. You should also have enough money saved for closing costs (e.g. attorney's fee, title insurance, taxes, etc.). Other fees such as loan fees, inspections and processing costs are not usually covered by the loan.

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