USDA Mortgage Calculator: Here’s how to CORRECTLY calculate a USDA monthly payment
So, how do you CORRECTLY calculate a USDA payment? Unfortunately, many USDA mortgage calculators have not been designed to handle USDA specifics and thus end up providing inaccurate numbers. As such, today’s video reviews exactly what should be calculated in a USDA monthly payment.
Plus, you can use our USDA Mortgage Calculator anytime! The calculator is to the right if you are on desktop, or towards the bottom of the page on mobile.
For more USDA loan details you can download our FREE report, Your USDA Blueprint for Success. It provides an overview of the USDA home loan process, eligibility requirements, and much more!
Calculating your USDA Monthly Payment
When trying to stay within budget, accuracy is critical! As a result, it is important to calculate a USDA payment properly because this allows you to stay within your price range while looking for homes. Therefore, the following should be included:
1. Property Taxes and Insurance
Property taxes and insurance are used to determine qualifying ratios and monthly housing expenses, but they can often be overlooked in calculations. If you are unsure about property tax estimates, it’s best to check with your local property tax collector. They can be a great resource to help with these questions.
2. Principal and Interest
The principal part of your payment goes towards paying down the loan balance. The interest is the cost paid for borrowing your loan.
Remember, interest rates change daily and multiple factors contribute to your interest rate calculation. Please give us a call if you have any specific rate and payment scenario questions.
3. USDA Guarantee Fee and Monthly Premium
USDA home loans require 2 separate fees:
- USDA Guarantee Fee: a one-time charge of 1.00% that is financed into the final loan amount.
- USDA Monthly Premium: .35% is calculated every month as a part of your monthly payment.
USDA Mortgage Calculator
Here’s how to use our USDA Mortgage Calculator:
- Type in your purchase price.
- USDA Guaranteed loan terms are for 30 years.
- Select your interest rate. Remember, that they do change daily.
- Input your estimated annual property taxes.
- Input your estimated annual homeowner’s insurance premium. Please note, property taxes and insurance will vary from property to property.
- Review your total estimated USDA monthly housing expense and make sure your payment is within budget!
Based on the numbers selected, our USDA Loan Calculator automatically factors both the USDA Guarantee Fee and the monthly premium into the housing expense estimate listed.
Please note: our calculator is for estimating purposes only, minimum credit conditions will apply on all loans. In turn, this is not a Good Faith Estimate nor a commitment to lend.
Give it a try, or feel free to forward it to anyone who may benefit! The calculator is to the right if you are on desktop, or towards the bottom of the page on mobile.
Learn what it means to have the strength and experience of a USDA Approved Lender working for your benefit. Just call or email to discuss your scenario, and let us show you the “Metroplex” difference!
(800)806-9836 Ext 280
SeanS@MPLX.org
P.S. Don’t forget to download Your USDA Blueprint for Success. This guide is complementary and designed to walk you through the USDA qualifying process step-by-step.
