USDA Announces Increase to the Upfront Guarantee Fee on 10/01/2015
The USDA has announced that they are increasing the Upfront Guarantee Fee from 2% to 2.75% effective 10/01/2015.
This is a fee that is financed into the loan amount. The USDA collects this fee to keep their no down payent program solvent and funded.
How does this affect you?
Current Upfront Guarantee = 2%
Loan Amount $100,000
Loan Amount with financed fee = $102,000
Monthly Principal/Interest Payment on 30 year fixed at 4% = $487
New Upfront Guarantee = 2.75%
Loan Amount $100,000
Loan Amount with financed fee = $102,750
Monthly Principal/Interest Payment on 30 year fixed at 4% = $490
Not a huge difference but it does have some effect.