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.