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Conversations about Atlanta Real Estate
How Much Down Payment Do You Charge?
[ Add Comment ] 06/30/08 | Kathy Drewien | Filed under: Atlanta Real Estate, Buyers, Mortgages
How much do you charge for a down payment? A question often raised by first time Atlanta home buyers.
Photo Credit: AMagill
The hopeful buyers have been looking at houses online, and identified a property that seems to meet their needs. It is only natural to ask how much money is needed to buy the house.
Just a few short months ago my answer would have been different. Some lenders will finance the down payment into your mortgage.
Today, mortgage guidelines and qualifications for obtaining a loan to purchase have changed. Lenders and mortgage brokers have gone out of business. Others are hanging on by a shoestring. One unwavering constant - since 1934 - is the Federal Housing Authority (FHA).
An FHA loan is a home mortgage that allows for a purchase or refinance with a low down payment. They’re great for the first time home buyer.
My real estate colleague in Pasadena, California area has written several articles on FHA advantages and disadvantages. Advantages include low cash outlay and no penalty for paying off the loan early. A small disadvantage is loans take approximately 45 days to process and close - about 2 weeks longer than a conventional loan.
Want more information on buying a house in north Atlanta with a small down payment? Contact us.
Use this topic list to tell how to best respond to your FHA loan questions.
- About the FHA
- Applying for an FHA Loan
- How To Pre-qualify for an FHA Home Loan
- The Increased FHA Loan Amount
- FHA Mortgage Fees
- Fees Prohibited by HUD
- FHA Loan Mistakes to Avoid
- FHA Adjustable Rate Mortgage
- FHA Loan Limit
- FHA Loan Options
Strategic Equity Management
[ Add Comment ] 06/18/08 | Jim Greenie | Filed under: Atlanta Real Estate, Buyers, Mortgages
There are several reasons why purchasing a home is preferable to renting one. Rent payments go directly into the pocket of a landlord, while mortgage payments result in the accumulation of equity and the eventual ownership of the property. The tax advantages of home ownership are also significant since mortgage interest is tax deductible.
Ironically, these two benefits do not always work well together! Financial planning expert and best-selling author, Douglas Andrew, has revealed some surprising misconceptions as well as some innovative strategies in his book, Missed Fortune 101. Andrew explains that most homeowners believe that paying down their mortgages quickly and increasing their equity is the best investment they can make. However, doing so results in a decrease in the tax benefits available since the loan is paid off sooner, causing the interest deductions to disappear.
As an alternative, Andrew suggests that homeowners obtain a fixed-rate, long-term mortgage. Rather than putting down a large down payment or paying extra principal, he recommends placing these funds in a carefully chosen investment vehicle that will earn a higher rate of return. By using the tax benefits of the interest deductions and the compounding of interest on the investment account, homeowners have the potential to earn a higher rate of return. In addition, should an emergency need for cash arise, the investment account will be much more liquid than the equity of the home.
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Conversation Tags: mortgagesAtlanta Mortgage Rates - June 13
[ Add Comment ] 06/13/08 | Jim Greenie | Filed under: Atlanta Real Estate, Mortgages
Mortgage rates are inching upward due to inflation.
This is not the type of market to sit around thinking about refinancing, or floating your mortgage rate. Here’s a short recap of how much rates have gone up for the conforming 30-year fixed :
- June 13 - 6.25%
- June 6 - 6.0%
- May 30 -5.875%
- May 23 -5.625%
| Conforming | APR |
Payment per $1000 |
Jumbo | APR |
Payment per $1000 |
|
| 30-Year Fixed | 6.25% | 6.391% | $6.16 | 7.375% | 7.476% | $6.91 |
| 15-Year Fixed | 5.875% | 6.107% | $8.37 | 7.125% | 7.286% | $9.06 |
| 5-Year Fixed ARM | 5.75% | 5.887% | $5.84 | 6.125% | 6.219% | $6.08 |
| 5-Year Interest Only | 5.875% | 6.013% | $4.90 | 6.25% | 6.344% | $5.21 |
As always, this is not a guarantee nor is it a commitment of interest rate.
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Atlanta Mortgage Rates - June 6
[ Add Comment ] 06/06/08 | Jim Greenie | Filed under: Mortgages
Atlanta mortgage rates are updated weekly.
| Conforming | APR |
Payment per $1000 |
Jumbo | APR |
Payment per $1000 |
|
| 30-Year Fixed | 6.0% | 6.139% | $6.00 | 7.375% | 7.476% | $6.91 |
| 15-Year Fixed | 5.625% | 5.856% | $8.24 | 7.125% | 7.286% | $9.06 |
| 5-Year Fixed ARM | 5.0% | 5.139% | $5.37 | 5.625% | 5.716% | $5.76 |
| 5-Year Interest Only | 5.25% | 5.383% | $4.38 | 5.625% | 5.716% | $4.69 |
*Rates are subject to change due to market fluctuations and borrower’s eligibility.
Enjoy the hot weather!
Conversation Tags: 30005 | 30022 | 30024 | 30062 | 30068 | 30075 | 30097 | mortgages
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