Category: MI Changes for USDA Oct 2011

August 1, 2012

Kentucky USDA Mortgage Upfront Guarantee Fee and the monthly mortgage insurance Annual fee 

Effective on October 1, 2012, the start of Fiscal Year (FY) 2013, Rural Development will revise the Up-Front Guarantee Fee and the monthly mortgage insurance fee structure as follows on a Kentucky USDA Mortgage loans in Kentucky for the Guaranteed Loan RHS :

Up-Front Guarantee Fee

Annual Fee

The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, “Conditional Commitment for Single Family Housing Loan Guarantee”) issued by Rural Development on or after October 1, 2012.  Loan guarantee requests submitted to Rural Development by September 30, 2012, in which a Conditional Commitment has not been issued, will be subject to the FY 2013 fee structure.

Lenders are encouraged to plan for the changes noted and should keep in mind that some Rural Development offices are experiencing extreme backlogs in loan guarantee delivery.  There are no exceptions to the FY 2013 fee structure. Therefore, starting on October 1, 2012 all Conditional Commitments will be subject to the FY 2013 fee structure, regardless of the date the request was received by Rural Development.

The FY 2013 fee structure is only applicable to Conditional Commitments issued on or after October 1, 2012, Conditional Commitments issued by Rural Development prior to this date are notsubject to the new fee structure.

Today’s Rates: 

				Conforming1 Loan Rate				FHA
				30 Year Fixed		15 Year Fixed		30 Year Fixed
		Interest Rate		3.75%		2.875%		3.375%
		Annual Percentage Rate (APR)		3.925%		3.182%		4.410%
		Monthly Payment		$833.61		$1,232.26		$995.53
		Payment Term		30 YEARS		15 YEARS		30 YEARS
		Loan Amount		$180,000		$180,000		$180,000
		Est. Prepaid Finance Charges		$3,800		$3,800		$3,800
		Down Payment		25%		25%		3.5%

Be aware that mortgage rates can change without notice and apply only in certain conditions. The APR for the loan products shown reflects the interest rates and estimated prepaid finance charges which include 1% of your loan amount to be paid toward the loan origination charge, but does not include all closing costs or discount points. The displayed rates assume that you’re refinancing a single-family primary residence with a 90-day-lock.

These mortgage rates are based upon a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit profile up to the time of closing.

The monthly payment amount displayed includes principal, interest and any required mortgage insurance. The payment amount does not include homeowner’s insurance or property taxes which must be paid in addition to your loan payment.

Conventional loans with a down payment less than 20% require mortgage insurance which could increase the monthly payment and APR.

FHA loans require both an upfront and in most cases, an annual mortgage insurance premium. The premium varies based on the individual loan characteristics. For illustrative purposes on FHA loans, our loan detail results include an estimated mortgage insurance payment added to the monthly principal and interest payment.

¹ Conforming loan amounts for certain loan products have increased in federally designated metropolitan areas. Larger limits available in the state of Hawaii. To find out if these new loan limits can help meet your needs, contact us

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