What is the monthly mortgage insurance on a USDA loan?

The upfront Guarantee Fee is 2.0% and the monthly is 0.40% for the life of the loan.

The monthly amount is calculated as a factor. Take your principal balance and multiply that by .4%. This will give you the annual amount which you'll then divide by 12 months.

It all depends on the loan amount. 2 % will be paid upfront and .4 % will be paid monthly. If you need assistance with a few scenarios, I would be happy to help you figure out the numbers.

Following up on others comments, if your loan is $100,000 the annual is cost is $400/12 = $33.34/mo.

Cindy, the amount that you pay monthly is .40% of your loan amount. For example, if your loan amount is $100,000 your monthly mortgage insurance amount would be $40 for the life of the loan. There is also an upfront guarantees the of 2% of the loan which in this case would be $2000. You do not pay the said closing unless you want to as this is added to your loan amount making your beginning loan amount $102,000. My team and I do a large amount of USDA loans. Keep in mind that if you are actually in San Antonio city limits the property may not be eligible. USDA loans are designed to encourage rural home ownership so the property has to be located in an eligible area. As a Texas lender I would be happy to check property addresses for you. Happy house!

The monthly mortgage insurance for USDA is calculated at 0.40% by the actual loan amount.