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Purchasing a first home is an exciting milestone in any person's life. However, those unfamiliar with purchasing a home - especially with a USDA Loan - will find themselves with quite a few questions, starting with, "Should I continue to rent or buy?"
Buying a home is one of life's biggest investments and ensuring you get the best deal can pay big dividends for decades to come. Fortunately, USDA Loan interest rates, which play a big role in how much home you can afford, are still low when compared to years past.
Three decades ago, interest rates hit highs that exceeded 17 percent. Fortunately, over the years, these rates have lowered considerably and made purchasing a home a much easier decision. But according to reports from the National Association of Realtors, interest rates are expected to rise by more than a full point in 2014.
What this means for buyers is that your purchasing power now is potentially much higher than what it could be even six months from now.
For example, at current conditions a potential borrower could buy a $150,000 home with a monthly payment near $950 a month. If rates rose an entire point as expected, that payment would increase nearly $100 a month - which would cost the borrower nearly $36,000 in additional interest over the life of the loan.
After deciding if now is the right time to buy, many potential homebuyers then ask themselves, "How much can I truly afford?"
This question takes on many factors, including you and your family's income, additional debts, a potential down payment - which isn't required with a USDA Loan - in addition to costs like homeowners insurance, taxes and HOA fees if applicable.
To help our borrowers, USDA Loans.com provides this convenient USDA Mortgage payment calculator to set expectations by calculating monthly mortgage payments.
This free USDA Loan calculator gives you a snapshot of what your monthly payments could be as a first-time homeowner using the Section 502 USDA Home Loan option
Here you will find a list of common questions our Loan Officers receive. Use this great resource meant for first-time USDA homeowners.
Fill out this short form to find out if you, or your potential area is USDA eligible.
Using a USDA Loan?
Call (877) 701-8732 or Get Started