Two ways to pay the USDA Upfront Guarantee Fee
Option 1: At Closing
Due at Closing
$
Initial Annual Fee Monthly
$
Total Lifetime Annual Fees
$
Option 2: Finance the Fee
Due at Closing
$0
Initial Annual Fee
$
Total Lifetime Annual Fees
$
Additional Interest Paid
$1,200
How financing affects your loan
By financing the upfront fee into the loan you will have less upfront costs at closing. If financed with a loan of
25 years you will pay an extra
$1,000 total in annual fees and
$1,200 in interest on the financed upfront fee over the life of the loan.
How financing affects your monthly payments
The USDA Annual Guarantee fee is calculated on the balance of the loan each year. The fee is split into monthly payments. In the case of the loan you would pay an average of $23 more each month if you finance the upfront fee into you loan.
