James and Jessica Matta - VA Loan Rate Comparison
HomeRock Mortgage Logo

James and Jessica Matta

VA Loan - Rate & Points Comparison

Dr. Barry Ingram
Dr. Barry
Your Mortgage Doctor
📧 Email: barry.ingram@homerockmortgage.com
📞 Phone: (832) 899-5626
🏦 NMLS: 1935491
📅 Prepared: June 6, 2026

🏡 Property Information

285 Meadowview Dr, El Campo, TX 77437
$275,000
OPTION 1
6.0% Rate

Lower Rate, Pay Points

Estimated Monthly Payment
$2,587
Principal, Interest, Taxes & Insurance
💳 Points Cost
+$666
+0.237% points (you pay at closing)
Cash to Close
$12,579
Total funds needed at closing (after EMD credit)
💰 Total Cash Needed
$14,179
Cash to Close + EMD ($1,500) + Option Fee ($100)

Monthly Payment Breakdown

Principal & Interest $1,684
Property Taxes (1.69%) $387
Homeowners Insurance $516
Total Monthly Payment $2,587

📋 Loan Details

Purchase Price $275,000
Down Payment $0 (0%)
VA Funding Fee (2.15%) $5,913 (financed)
Loan Amount $280,913
Interest Rate 6.0%
Points +0.237% ($666)
Annual Insurance $6,189
Earnest Money Deposit $1,500
Option Fee $100

✓ VA Funding Fee: The $5,913 VA funding fee is financed into your loan amount and does not require cash at closing. This is a first-time VA loan use (2.15% rate).

📋 Required Tax Credit: Seller is required to provide a tax credit of $2,711 (7 months of property taxes) at closing.

💰 Closing Costs & Cash to Close ▼

Lender Origination Fees

Loan Origination Fee $1,195
Total Lender Origination Fees $1,195

Services Borrower Cannot Shop

Appraisal Fee $650
Attorney Doc Prep Fee $100
Credit Report Fee (POC) $140
Final Inspection $250
Flood Certification $20
Tax Service $85
Third Party Processing Fee $895
Total Services Cannot Shop $2,140

Services Borrower Can Shop For

Title - Title Search $75
Title - Closing Protection Letter $75
Title - Courier Fee $50
Title - Endorsement Fee $250
Title - Insurance Binder $150
Title - Premium for Lenders Coverage $50
Title - Settlement Fee $500
Title - Wire Transfer Fee $75
Total Services Can Shop $1,225

Taxes and Other Government Fees

Recording Fee For Deed $175
Transfer Taxes / Tax Stamp For County Deed $60
Total Government Fees $235

Points

Discount Points (+0.237%) $666
Total Points $666

Prepaids

Hazard Insurance ($516 x 12 months) $6,189
Total Prepaids $6,189

Initial Escrow Payment at Closing

Hazard Insurance ($516 x 3 months) $1,547
Property Taxes ($387 x 10 months) $3,873
Total Initial Escrow $5,420

💵 Cash to Close Summary

Estimated Closing Costs $4,655
Points Cost $666
Estimated Prepaid Items $11,609
VA Funding Fee $0 (financed)
Less: Borrower Paid Fees (POC) -$140
Less: Required Tax Credit (7 mo) -$2,711
Less: Earnest Money Deposit -$1,500
CASH TO CLOSE $12,579
Earnest Money Deposit $1,500
Option Fee $100
TOTAL CASH NEEDED $14,179
OPTION 2
6.35% Rate

Higher Rate, Lender Credit

Estimated Monthly Payment
$2,648
Principal, Interest, Taxes & Insurance
💵 Lender Credit
-$2,689
-0.957% points (lender pays you at closing)
Cash to Close
$9,224
Total funds needed at closing (after EMD credit)
💰 Total Cash Needed
$10,824
Cash to Close + EMD ($1,500) + Option Fee ($100)

Monthly Payment Breakdown

Principal & Interest $1,745
Property Taxes (1.69%) $387
Homeowners Insurance $516
Total Monthly Payment $2,648

📋 Loan Details

Purchase Price $275,000
Down Payment $0 (0%)
VA Funding Fee (2.15%) $5,913 (financed)
Loan Amount $280,913
Interest Rate 6.35%
Lender Credit -0.957% (-$2,689)
Annual Insurance $6,189
Earnest Money Deposit $1,500
Option Fee $100

✓ VA Funding Fee: The $5,913 VA funding fee is financed into your loan amount and does not require cash at closing. This is a first-time VA loan use (2.15% rate).

📋 Required Tax Credit: Seller is required to provide a tax credit of $2,711 (7 months of property taxes) at closing.

💰 Closing Costs & Cash to Close ▼

Lender Origination Fees

Loan Origination Fee $1,195
Total Lender Origination Fees $1,195

Services Borrower Cannot Shop

Appraisal Fee $650
Attorney Doc Prep Fee $100
Credit Report Fee (POC) $140
Final Inspection $250
Flood Certification $20
Tax Service $85
Third Party Processing Fee $895
Total Services Cannot Shop $2,140

Services Borrower Can Shop For

Title - Title Search $75
Title - Closing Protection Letter $75
Title - Courier Fee $50
Title - Endorsement Fee $250
Title - Insurance Binder $150
Title - Premium for Lenders Coverage $50
Title - Settlement Fee $500
Title - Wire Transfer Fee $75
Total Services Can Shop $1,225

Taxes and Other Government Fees

Recording Fee For Deed $175
Transfer Taxes / Tax Stamp For County Deed $60
Total Government Fees $235

Lender Credit

Lender Credit (-0.957%) -$2,689
Total Lender Credit -$2,689

Prepaids

Hazard Insurance ($516 x 12 months) $6,189
Total Prepaids $6,189

Initial Escrow Payment at Closing

Hazard Insurance ($516 x 3 months) $1,547
Property Taxes ($387 x 10 months) $3,873
Total Initial Escrow $5,420

💵 Cash to Close Summary

Estimated Closing Costs $4,655
Estimated Prepaid Items $11,609
VA Funding Fee $0 (financed)
Less: Lender Credit -$2,689
Less: Borrower Paid Fees (POC) -$140
Less: Required Tax Credit (7 mo) -$2,711
Less: Earnest Money Deposit -$1,500
CASH TO CLOSE $9,224
Earnest Money Deposit $1,500
Option Fee $100
TOTAL CASH NEEDED $10,824

📊 Side-by-Side Comparison

Feature Option 1 (6.0%) Option 2 (6.35%)
Property Address 285 Meadowview Dr, El Campo, TX 77437
Purchase Price $275,000
Interest Rate 6.0% 6.35%
Points +0.237% (+$666) -0.957% (-$2,689)
Loan Amount $280,913 $280,913
Principal & Interest $1,684/mo $1,745/mo
Property Taxes (1.69%) $387/mo $387/mo
Homeowners Insurance $516/mo $516/mo
Total Monthly Payment $2,587/mo $2,648/mo
Estimated Closing Costs $4,655 $4,655
Points Cost/Credit +$666 -$2,689
Estimated Prepaid Items $11,609 $11,609
Required Tax Credit (7 mo) -$2,711 -$2,711
Earnest Money Deposit -$1,500 -$1,500
Cash to Close $12,579 $9,224
Add Back: EMD $1,500 $1,500
Option Fee $100 $100
Total Cash Needed $14,179 $10,824
Monthly Payment Difference $61 less/mo $61 more/mo
Cash to Close Difference $3,355 more $3,355 less

📈 Long-Term Interest Cost Analysis

Understanding how the higher interest rate impacts your total cost over time

5 Years

Option 1 (6.0%)
$82,461
Option 2 (6.35%)
$87,281
Additional Interest
+$4,820

10 Years

Option 1 (6.0%)
$157,714
Option 2 (6.35%)
$167,196
Additional Interest
+$9,482

15 Years

Option 1 (6.0%)
$224,461
Option 2 (6.35%)
$238,387
Additional Interest
+$13,926

🎯 Break-Even Analysis

Higher Upfront Cost (Option 1)
$3,355
Monthly Savings (Option 1)
$61/mo
Break-Even Point
55 months

💡 Recommendation

If you plan to keep the home longer than 4.6 years (55 months), Option 1 (6.0% with points) will save you money in the long run.

After the break-even point, you'll continue saving $61 per month, and you'll pay significantly less interest over the life of the loan. However, if you plan to sell or refinance within the next 4-5 years, Option 2 (6.35% with lender credit) may be the better choice due to lower upfront costs.

📋 Key Considerations

  • Option 1 (6.0%): Best for long-term homeownership. Lower monthly payment and less total interest paid over time.
  • Option 2 (6.35%): Best if you need to minimize cash at closing or plan to refinance/sell within 5 years.
  • Both options use the same loan amount ($280,913) and have the same closing costs structure.
  • The difference is purely in the interest rate and points/credits applied.

🏡 Ready to Choose Your Best Option?

Let's discuss which rate and point structure aligns best with your financial goals and timeline!

📞 Call Dr. Barry 📧 Email Dr. Barry

HOMEROCK MORTGAGE, INC

24624 Interstate 45N, Suite 120, Spring, TX 77386 | Company NMLS: 1691956

Important Disclaimer: Information provided above reflects estimates of the charges that are likely to be incurred at the closing of this loan. Actual charges may be more or less. Before closing, your interest rate, points, and lender credits can change unless you lock the interest rate. This is not a commitment to lend. All loans subject to credit approval.

Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.