USDA refinancing: three ways to lower your payment.

Who can refinance with USDA

USDA refinances are only for existing USDA loans, guaranteed or direct. You can't refinance an FHA or conventional loan into USDA. USDA refinances are also rate and term only. There's no USDA cash out refinance.

Streamlined Assist

The simplest option. Generally no appraisal, no new debt to income calculation and limited documentation. You'll typically need a year of on time payments on your current loan, and the refinance must lower your combined principal, interest and annual fee payment by at least $50 a month. Household income limits still apply.

Streamlined

Also no appraisal, but with standard credit and income qualifying. It fits borrowers who don't meet the Streamlined Assist rules or want to change who's on the loan.

Non Streamlined

A full refinance with a new appraisal. It can include eligible closing costs up to the appraised value, which helps borrowers with equity.

Costs

All three carry the 1% upfront guarantee fee, usually financed, and the 0.35% annual fee continues.

Leaving USDA

If you've built significant equity, refinancing into a conventional loan can eliminate the annual fee. With a fee this low, it often only makes sense when rates or other goals also line up. Compare total costs. See the true cost of a mortgage.

A $140 a month savings

Melanie bought with USDA two years ago at a higher rate and had a year of on time payments.

A Streamlined Assist refinance with no appraisal and no new income qualifying lowered her payment by about $140 a month, well past the $50 test.