Monthly payment of USDA loans saves interest

12/5/2011

A USDA loan provided to Marshall County, Tennessee, has been altered to allow for monthly payments for pipeline construction costs, the Marshall County Tribune reports.

The county previously received a $3.95 million USDA loan through the department's Rural Development Agency to assist in the installation of water pipes to extend potable water service to residents. It's part three of a major project commissioned by Marshall County.

"It's a correction to one we already passed," county budget director Freda Terry told the news source after the commissioner's monthly meeting on Monday. "It makes you pay monthly. That way you pay less in interest."

USDA representatives recently held a meeting in late November in Murfreeboro, Tennessee, to educate those interested in learning about its federal home loan programs, the Daily News Journal reports.

Homeowners discovered that Rural Development loans were available for home repair, and interest rates can be spread out as long as 20 years, making for low monthly payments.

More than $737 million was loaned to Tennessee families through the USDA last year.