Understanding Refinance with USDA
A USDA loan is guaranteed by the U.S. Department of Agriculture and offers numerous advantages to homeowners. While your property must be in a “rural” area outlined by the USDA, you may be surprised at what they deem rural, as many suburban areas may qualify.
Benefits of refinancing with a USDA loan include:
Low interest rate
Since the loan is guaranteed, the rate is typically lower because it’s not tied to your credit score or a down payment amount.
Low private monthly insurance
As of 2019, the upfront mortgage insurance rate on a USDA loan is just 1%, with an annual fee of only 0.35%, which are the lowest numbers of virtually any mortgage program.
The upfront fee can be rolled into the loan, eliminating an out-of-pocket expense at closing.
Flexible credit guidelines
If you have lower credit scores or your credit history isn’t perfect, you may still meet the program’s qualifying requirements.
A USDA refinance loan with PrimeLending is a 30-year fixed-rate, offering lower and more affordable monthly payments. If you’re interested in learning more about refinancing with a USDA loan, contact a local PrimeLending loan officer to get started.