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USDA Refinance Calculator
Already in a USDA loan? A streamline refinance can cut your rate — and USDA refinance rules still let the 1% guarantee fee be financed. Compare your current payment with a new loan, including how many months the savings take to pay back the closing costs.
FY2027 fee schedule (1% upfront, 0.35% annual, 1 Oct 2026 – 30 Sep 2027), checked against USDA Rural Development program terms, November 2026. Last updated 13 November 2026. Estimates only — not a lender, and not affiliated with the U.S. Department of Agriculture.
Estimate your USDA refinance saving
Both payments also carry the 0.35% annual fee on the balance, which restarts on the new loan. A refinance only pays off if you stay in the home past the break-even point — and remember a fresh 30-year term stretches the debt even when the payment falls. Run your current numbers in the main calculator first.
How the Refinance Calculation Works
- New loan amount = current balance + 1% upfront guarantee fee (when financed). The fee applies again on a USDA-to-USDA refinance.
- Monthly saving = current principal & interest minus new principal & interest, both on a 30-year term. The 0.35% annual fee applies to both loans, so it is left out of the saving — it restarts on the new balance.
- Break-even = closing costs ÷ monthly saving. If you sell or refinance again before that many months, the refinance costs more than it saves.
- The catch. A fresh 30-year term means paying interest for 30 more years. If you have already paid several years, compare the total interest over the remaining life, not just the monthly payment.
Sources. USDA Rural Development refinance terms for the Single Family Housing Guaranteed Loan Program, checked November 2026. Closing costs and rates vary by lender.
Sources
Official sources for the figures on this page. If a number here ever disagrees with one of these pages, the official source is correct.
- USDA Rural Development — Single Family Housing Guaranteed Loan Program (program rules, guarantee fees, income limits).
- USDA Income and Property Eligibility Site — the official eligibility map: enter an address to check the property, and a state and county to check income limits.
- USDA income limits tool — look up the income limit for your state and county (cited in HB-1-3555, Chapter 9).
- USDA Handbook HB-1-3555 — the Single Family Housing Guaranteed Loan Program handbook for lenders (PDF).
- 7 CFR 3555.107 — guarantee fee — the regulation behind the upfront and annual fees.
- Consumer Financial Protection Bureau — How to review your Loan Estimate.
Frequently Asked Questions
What is a USDA streamline refinance?
A refinance for existing USDA borrowers with reduced documentation — often no new appraisal and less paperwork than a standard refinance. The 1% upfront guarantee fee applies again and can be financed into the new loan.
Can refinancing remove the USDA annual fee?
Only by refinancing into a conventional loan — and that usually needs about 20% equity to avoid PMI. A USDA-to-USDA refinance keeps the 0.35% annual fee, because the fee runs for the life of any USDA loan.
Does refinancing restart the 30-year clock?
Yes. A new 30-year term starts over, which lowers the monthly payment but stretches total interest. Compare the break-even point above with how long you plan to stay in the home.
More USDA Loan Tools
One topic, six tools — each answering a different question in the USDA loan journey.