USDA Loan Calculator – Guarantee Fee and Annual Fee Calculator
USDA Mortgage Calculator
Total Monthly Payment
|USDA base loan amount||$0|
|USDA total loan amount||$0|
|Principal & interest||$0|
|USDA guarantee fee 2.75%||$0|
How to Use This Mortgage Calculator
- Price of Home – Enter the price of the home you want to buy. If you do not have a home in mind yet, just add in a number in the range you expect to want to buy a home for.
- Mortgage – The second field titled “mortgage”, is by default on a 30 year fixed loan schedule. This is the most common loan repayment schedule selected for USDA loans. You can also select a 15 year mortgage.
- Interest Rate – The interest rate a borrower receives depends on their credit, income, and other qualifying factors. To get an actual rate quote, you will need to speak with a licensed loan officer. You can call 1-800-731-3560 to get prequalified and receive a rate quote.
- Down Payment – USDA loans do not require a down payment. If you would like to put money down, reduce the amount you put into the Price of Home field to reflect how much you want to use as a down payment. So if you want to buy a $150,000 home, and plan to put $10,000 down, then add in $140,000 for the Price of Home, which will serve as your total loan amount for the purpose of calculating your expected payment.
- Property Taxes – Add the annual taxes for the home you want to buy. To find out how much the annual property taxes are, check with the county accessor. You can also ask a real estate agent to help you find out what the exact annual property taxes are for a home you are interested in.
- Annual Insurance – The amount that the annual homeowners insurance will cost depends on the property you intend to buy, your homeowners insurance claim history (if you have owned a home before, and had to make a claim), and the specific homeowners insurance company that you select to insure your home.
- Down Payment – This is the percentage that is calculated based upon the home purchase price and the down payment amount.
After summiting information into these fields, it will calculate how much the USDA mortgage payment will be based upon these numbers. The next set of data presented on the right side and shows under the total monthly payment is as follows:
- USDA Base Loan Amount -This is the amount of your loan after subtracting your down payment from the total, but prior to adding in the USDA upfront mortgage insurance premium (UPMIP).
- USDA Upfront Mortgage Insurance – All USDA loans require a 2.75% upfront “guarantee fee” (which is the name of the USDA mortgage insurance) premium to be paid. This is calculated from the base loan amount. This 2.75% is the same for any borrower and on any type of USDA loan. It does not vary from one lender to another.
- USDA Total Loan Amount – This is the combined total of your USDA base loan amount (after subtracting the down payment), along with the upfront mortgage insurance fee. You have the option to pay the mortgage insurance amount out of pocket, or you can wrap it into the loan amount. Most decide to include it in the loan amount, so we have it automatically added on the calculator.
- Principle and Interest – This is the amount of your mortgage payment before adding mortgage insurance, and property taxes, and property insurance.
- USDA Monthly Mortgage Insurance – This is the monthly mortgage insurance premiums required on all USDA loans. This amount is 0.50% of the principle loan balance. It is recalculated each year and goes down as your loan balance does.
- Monthly Escrow – This is how much your property taxes and property insurance is after taking the annual amounts and dividing them by 12 monthly payments.