Fiscal Year End Conversion Process Due to Increase in Annual Fee
On October 1, 2014 the annual fee for both purchase and refinance loans will increase from .4% to .5%. This change is required to maintain a neutral cost of the program. The USDA annual fee is paid monthly as part of your USDA mortgage payment. For more info on USDA loans in an easy-to-understand short article please Click Here.
Fee Increase Example:
Your new USDA loan originated after October 1, 2014, is for $120,000. The annual fee of 0.50% equates to $600 owed to USDA your first year. The $600 is divided by 12 and paid monthly as part of your USDA payment = $50.00 monthly.
Curious if the home you’re looking at is eligible for USDA financing? Find out by clicking here!
Here is the publication from USDA’s site – click here!
