Mortgage and Refinance Rates in Georgia
Use our comparison table to compare refinance and mortgage rates in Georgia
Today's Rates in Georgia
Georgia is currently the country's eighth-most populated state, but what stands out is the less-than-national average housing costs and rates. The state boasts of delightful weather, global sporting attractions, and a rich cultural heritage. Recent phenomenal job growth rates and ranking as one of the best states for doing business only mean that more people will want to have a slice of the Peach State.
Georgia is simply one of the best places to become a homeowner. In the quest to be one, you will need to get in on mortgage loans. That's where the hard work begins; securing a fabulous mortgage may seem confusing, but there are a few nuggets that can guide you on how to get the best rates.
A Few Things to Note When Looking For The Best Mortgage Rates in Georgia
Back To The Top
At the top of this page, you will find the current mortgage rates in Georgia by using our comparison table. These rates vary a lot. Sometimes, you may be getting two sets of mortgage rates in a day. These rates may cause a lot of uncertainty in your mind, but one thing that will be of immense help to you is to keep in mind that these rates are only an average of all the rates given to borrowers.
This means that, unlike regular commodity costs, mortgage rates are not arbitrary. They vary with lenders, borrowers, and their current financial profiles, taking some anxiety off you.
Get as many personalized rates as you can
There is a big market out there with several lenders ready to offer great rates. It is always best to have as many options as possible so that you can go home with the best.
Always look beyond the Nominal Mortgage Rates
Now that you're aware of the volatile nature of mortgage rates, you will still need to familiarise yourself with how misleading some mortgage loan rates may be. You might find an advertisement for a loan, and you may think it is the perfect bargain. You'll be forgetting that adverts are meant to catch your attention, and you might not be looking at the full picture.
You might not see the hidden costs and high fees that may come with the discount points. Unfortunately, some of these deals will cost you so much more in the long run than if you had just stuck with a loan with higher rates and lesser fees.
Compare with their APRs
Annual Percentage Rates, commonly known as APRs, are a viable tool in properly evaluating mortgage rates. They help examine rates from the endpoint of how much you'll be paying at the end of the year by taking all the associated costs into account with the mortgage rates and expressing it as an annual percentage.
Do Thorough Research and Analysis
Having understood that mortgage rates are a bit discriminatory, it is to your advantage that you properly assess your financial situation, and mortgage loan types would be most beneficial. You can do this more accurately when you understand the borrower-factors that directly influence the rates you might receive.
Some of these factors are:
Loans with lower down payment go hand in hand with much higher mortgage rates in comparison with loans requiring higher down payment. To get better rates, you may choose to aim for homes where you can settle a significant down payment or a loan where you still get decent rates for a low down payment.
Your credit score determines the kind of rates lenders give you. If you have a high credit score, you'll tend to get better rates. When you're planning and preparing to take a mortgage loan, you can actively work on your credit score to attract more favorable rates.
More expensive houses requiring Jumbo loans will attract higher rates than the ones that meet the Freddie Mac and Fannie Mae guidelines, as they do not receive any guarantee against loan default.
30-year mortgage loans tend to have higher rates than their 15-year counterparts. Refinancing is an option that provides lower rates than second mortgages. How long you plan on staying in the house will also go a long way in determining if you take out a fixed-rate loan or an Adjustable-rate loan(ARM).
Loan-To-Value (LTV) Ratio
This is a way of expressing the loan amount as a fraction of the total cost of buying a house. For instance, if you want to buy a house worth $200,000 and you're taking out a mortgage loan of $180,000. The LTV ratio is 180,000/200,000 which is 90%.
To get a high LTV in some cases, you might be required to get mortgage loan insurance. Lower LTVs give lower mortgage rates for high-risk borrowers. With a weak credit score, you can still get good rates but at the cost of a lower LTV.
Types of Mortgage Loans available in Georgia
These are loans that offer customers rates that remain constant throughout the life of the loan. They will be unaffected by the state of Georgia's housing market in the future. They are great for predictability and long-term home-owning prospects. These loans may be conventional, meeting the Freddie Mac and Franny Mae conforming guidelines for 10, 15, or 30-year durations, or Jumbo-type for houses that cost higher than the stated criteria.
Usually, the houses with Jumbo Mortgage loans have much higher mortgage and interest rates than the conventional ones. The conventional loan lenders give the best rates to borrowers with good credit scores and a better financial profile. This means that prospective buyers with lower credit scores may need to consider other mortgage loan options.
Georgia FHA mortgage loans
The Federal Housing Agency is responsible for some mortgage loans that are obtainable in Georgia. In the previously-stated fixed mortgage rate offers, borrowers with limited financial ability and weak credit scores are at the losing end. FHA loans instead tend to cater to them. These lenders affiliated with the FHA are willing to provide loan services to borrowers with credit scores lower than 620 in Georgia.
A down-payment of less than 3.5% is also accepted. The rates given are usually affordable enough to mitigate the burden of paying for a mortgage insurance premium. In cases where the borrower's credit score is below 580, a down-payment of 10% is required, and even with this, the FHA loans are still favorable enough for them to obtain.
First Time Homebuyer Loans
These are offered to home-buyers looking to purchase their first home. It is provided by the Georgia Department of Community Affairs (DCA) Georgia Dream Homeownership program. They mostly offer down-payment loan assistance services. Some of them are:
- Georgia Dream Standard Down-payment Assistance: They provide borrowers with loans of up to $5,000. These loans are interest-free, and they have specific criteria for prospective borrowers to meet.
- Georgia Dream PEN Down Payment Assistance: These are restricted to borrowers employed in the Education, Healthcare, and emergency industry. Usually, they are provided with as much as $7,500 in down-payment interest-free loans.
- Georgia Dream Choice Down Payment Assistance: one of the members of the borrowers' household being disabled is a crucial criterion. It is also an interest-free $7500 loan.
Home Equity Loans In Georgia
These loan types are anchored on the current inherent value of the home. Home equity is defined mathematically as the difference between the house's current cost and the amount of the unpaid mortgage loan. For example, it is correct to say that a house worth $250,000 and unpaid mortgage loan value of $150,000 has a current equity of $100,000.
Then this equity is used as security for loans. Borrowers towing this line get excellent rates as the lender's risk of money loss is so much lower than other types of mortgage loans. This is a significant positive. There are two important types of home equity loans in Georgia. They are:
- Standard Home Equity Loan: These loans are administered as a lump sum at once into the borrower's account. They may function with fixed-rate or adjustable-rate arrangements. The Fixed-rate variant is the more popular one as the adjustable-rate plan rates can only become responsive to current market conditions after a priorly stated period.
- Home Equity Line Of Credit (HELOCs): Borrowers are given a credit line account, which they can draw from whenever the need arises to pay for the loans. This line is kept open for about 5-10years. The rates of this loan are adjustable but can be converted to fixed rates once the repayment period begins.
If you want, you can start paying back the loan principal before the repayment period begins. Doing this will help you keep the line open for more credit to have constant access to cash on demand, thereby reducing interest charges.
Refinancing in Georgia
In refinancing, all you're doing is replacing old home loans with new ones just so that you can get better terms. Before you refinance, it is vital that you carefully ascertain that the new loan will cost you less in the long run than sticking with the old one.
Refinancing loans in Georgia are as unproblematic as getting a primary mortgage loan. The difference is that a primary loan's down-payment becomes the home equity in refinancing loans. The advantage of this is that most people apply for refinancing loans; their home equity would be substantial enough to grant them significantly lower refinance rates from lenders.
You can improve your prospects by putting time and effort into understanding the market, shopping for as many offers as you can get, improving your credit score, and setting out for loan types that fit your current financial situation.
Yes, there are a couple of interest-free down-payment loans offered by the Department of Community Affairs. They are: Georgia Dream Standard Down Payment, Georgia Dream PEN Down Payment, and Georgia Dream PEN Down Payment Assistance
Your home equity is of the utmost importance when you're out for a refinance loan; it is technically your 'down payment'. The amount of home equity you have determines how good the rates you get are.