USDA to cut loan mortgage insurance costs
The USDA Rural Housing home loans will soon get cheaper for homeowners with lower mortgage insurance costs.
The monthly mortgage insurance on a USDA loan will also be reduced from the current .50% to just .35%. On that same sample $100,000 loan, this means a monthly mortgage insurance drop from $42.84 a month to $29.99 a month.
The change becomes effective Oct. 1, 2016, and will bring the fees and insurance premiums down to pre-recession levels.
The agency said that the cuts were possible because of the bulk of the mortgage and housing crisis is over, and foreclosure rates have fallen to back to more traditional numbers.
Learn more about USDA rural housing home loans in MN, WI, IA, ND, SD.