The USDA mortgage calculator estimates your monthly payment including principal, interest, the annual guarantee fee of 0.35%, property taxes, and homeowners insurance. It also accounts for the 1% upfront guarantee fee that is typically financed into the loan. Since USDA loans require zero down payment, the full purchase price plus the upfront fee becomes your loan amount.

The calculator includes the upfront guarantee fee of 1% of the loan amount financed into the loan, plus the annual guarantee fee of 0.35% divided into monthly installments. It also estimates property taxes and homeowners insurance. These fees are lower than FHA mortgage insurance, making USDA payments very competitive for eligible borrowers.

With USDA zero down payment, your entire purchase price is financed, plus the 1% upfront guarantee fee. For a $250,000 home, your actual loan amount would be $252,500. While this means financing the full value, the very low guarantee fees and competitive rates still result in monthly payments that are often lower than FHA loans with 3.5% down.

Yes, while USDA loans require no down payment, you still have closing costs of 2-5% that can be covered by gift funds, seller concessions, or rolled into the loan if the appraised value supports it. The calculator can model scenarios where closing costs are financed into the loan versus paid upfront to show the payment difference.

USDA guarantee fees are significantly lower than FHA mortgage insurance premiums. The USDA upfront fee is 1% versus FHA at 1.75%, and the annual fee is 0.35% versus FHA at 0.55%. On a $250,000 loan, this saves approximately $41 per month in ongoing fees, making USDA the more affordable option for eligible borrowers.