Dekalb Mortgage Rates

Mortgages in DeKalb County

When shopping for a mortgage in a large market like DeKalb County in Decatur, it is important to use your time wisely and not take too long to shop around. If you shop over the course of a couple weeks rates could have changed ten times at the first bank you called by the time you get around to comparing the rates of all the banks. In addition to the effect on your free time, it can have a negative effect on your credit score. Some banks don’t give out rates until after they have run a credit report to determine whether or not you will be a low-risk lender. Every time someone requests a credit report it shows up as credit activity and can negatively affect your score which can then have an impact on the rate you are offered.

A simple way to avoid these headaches is to use a broker. Mortgage brokers have access to the rates and qualifications of several banks and can determine the rates you will be offered at each bank. The broker runs one credit report and then communicates the information to the banks to determine what interest rate they will extend you. Using a mortgage broker can save you both time and money, but buyers beware. Some brokers charge large upfront fees, points on your loan, or additional fees in closing costs. Be sure you know how much using the broker will cost you before you decide to use one. Some brokers are also offered kick backs from the banks for recommending one lender over another. Ask the broker directly how they make their money and make the decision to use one wisely.

DeKalb County Home Equity Loans

A home equity loan is a relatively simple loan and can take less than a week from application to closing. In the whirlwind and relief of getting money you need, you may not find the time to read the fine print or ask a few important questions. The biggest loophole banks try to sneak into a home equity loan is a pre-payment penalty. This means that they will penalize you if you pay off the loan earlier than expected by charging you the interest they may have lost by you paying off the loan. This can be a costly mistake that you don’t realize you’ve made until it’s too late. Some lenders will try to sneak credit insurance into your monthly payment. Credit insurance can help pay off the loan in the event of disability or death, but is unnecessary if you have the appropriate life insurance and disability insurance through your workplace. This can add a significant amount to your monthly payment for something you don’t need. Be sure to look over the fine print of your final note. Some lenders have a clause that allows them to raise your interest rate if you are late on your payment even once. This can also apply to fixed rate home equity loans, so read everything before you sign it.

FHA Mortgage Loans in DeKalb County

Since the inception of the $8,000 first-time home buyer tax credit, the FHA has had an increase in consumers applying for FHA loans. The FHA is the only mortgage organization that can monetize (cash out) the tax credit and give it to the home buyer to help with the down payment. Other lenders cannot do this, forcing the purchaser to wait until tax time to receive the credit. Allowing consumers to use the $8,000 from the federal government as a down payment can increase their eligibility for other FHA loan programs and allow them to purchase a house with any cash from their pocket.