New USDA Mortgage Insurance
As of October 1, 2012 the annual MI on all USDA loans is increasing from .3% to .4%. This should not be a huge concern as the rate is still relatively low especially compared to FHA which is at 1.25%.
On a 200k loan the usda monthly mortgage insurance will go from $50 per month to $66.67 per month a difference of $16.67. The up front MI will stay the same at 2% for new purchase.
On USDA Refinances (which are currently out of funds until at least October 2012) will also incur an annual MI increase from .3% to .4%. The up front will increase from 1.5% to 2% to match the structure of new purchase.
The way the annual rate is calculated is to take the original loan amount and multiply it by .004 (this will give you the annual) then divide it by 12 which will give you the monthly cost. 200,000 x .004 = 800 / 12 = 66.66
USDA Loans are still an extremely strong loan compared to FHA and Conventional and with no down payment requirement its a no brainer for most people who qualify.