The principal ($62,500) and interest (6.5%) payment calculated over 30 years would be $395.04. The VA is going to require you to escrow insurance and taxes and pay 1/12 of those each month. Thus, you need to know how much home owners insurance and property taxes will be. Divide those amounts by 12 and tack that number onto the $395.04 for your PITI payment (Principal-Interest-Taxes-Insurance).

Don't forget if you have a funding fee that will most likely be rolled into the loan, increasing the balance due. Also, you need to consider how the closing cost will be paid.

Sitting down with a banker/lender will help you plan this better.

Good luck,

Susan Walker

On a $62,000 property, your payments are going to be around 600/mo. For a more specific estimate of all costs, ask your mortgage lender for a Good Faith Estimate on that property.