USDA Upfront Guarantee Fee – Refinance Cost Increase

Date: January 23, 2012

Effective Wednesday December 7, 2011 the upfront Guarantee Fee for will be increased from 1.00% to 1.50% for the refinance transactions. This increase was deemed necessary by U.S. Department of Agriculture Rural Development to ensure the economic viability of the USDA Loan Program and ensures that the program continues to be tax payer neutral meaning that the program isn’t subsidized by the U.S. taxpayer.

The USDA annual fee remains at a .3% factorial based on the outstanding balance of the mortgage loan.

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