USDA mortgage rates and mortgage insurance are among the most affordable in the market. Since the Rural Mortgage is guaranteed by a government agency, USDA loans have more protection than comparable loans and are therefore less risky for investors. Less risk means lower rates. USDA’s mortgage insurance is provided in the form of a guarantee fee. This fee is made up a 1.00% upfront fee and a .35% annual fee. So, 1.00% of the purchase price is due as an upfront fee and .35% of the purchase price is lumped in to the total loan price. Instead of requiring buyers to pay the upfront guarantee fee out-of-pocket, the fee is rolled into the total loan amount as well. In comparison, FHA mortgage insurance consists of a 1.75% upfront fee that is not financed into the loan and a .85% annual fee. USDA Rural Mortgage payments are more affordable than almost all other mortgages on the market<< Back to the list.
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Primary Residential Mortgage, Inc.
Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.