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The fifth section of the calculator [Loan costs] contains multiple important variables for veterans. Namely it lists VA status, loan use & if the funding fee is financed in the loan. By default these are set to active duty/retired military, first time use & funding fee financed.
Why the Loan-to-Cost Ratio Is Important. The loan-to-cost ratio is important because it helps to determine the size of a loan based on the actual costs of the completed project. Borrowers use their LTC rates to set a maximum budget and determine their out of pocket costs such as down payment as well as ongoing expenses like monthly loan repayments.
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A longer loan term will result in lower monthly payments, but higher interest costs. 3. Hit calculate to see your results. Results are based on a survey of rates offered by lenders in NerdWallet’s.
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