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Mortgage rates vary depending on individual circumstances. In mid-August, the average 30-year mortgage rate was 5.89%. Refinance rates can be even higher. Many lenders require appraisals to ensure that borrowers have sufficient equity available when refinancing. The reason for this is that home values are constantly in flux, depending on demand and supply.
Single-Family Home Loan Limit In Georgia
The conforming loan limits in Georgia are currently $647,200 for single-family homes. Each year, the limits are adjusted to reflect changes in home prices. According to the FHFA, the average increase in home prices in the third quarter of 2018 was 5.38%. The agency expects the conforming loan limits to rise by a similar percentage by 2022. The current Georgia single-family home loan limit is $647,200, which is 150% of the baseline loan limit. High-cost areas have higher limits, and it is important to check the rules of your area when applying for a loan.
The new limits apply to both conforming and FHA loans. FHA loans have lower down payments and fewer requirements. They can be used to purchase a single-family home in most counties in Georgia, including Atlanta-area counties. FHA loan limits are set by the U.S. Department of Housing and Urban Development and may vary by county.
First-Time Homebuyer Programs
If you are looking to purchase your first home in Atlanta, you can qualify for down payment assistance programs. These programs are often paired with affordable first-time homebuyer loans, which can help you make the down payment on a home. You can also get help with closing costs if you qualify for these programs.
Loan Limits
Currently, the loan limits for Georgia are $647,200 for conforming loans and $515,200 for FHA loans. The higher conforming loan limits are good news for homeowners, since higher loan amounts mean better rates and lower down payments. However, there are several counties in Georgia with loan limits that are significantly higher. The Atlanta metro area is one of those counties.
The median home price in Atlanta is currently around $405,000, up from $160,000 six years ago. This is a great sign of the growing affordability of Atlanta real estate, especially in the jumbo-luxuryluxury market. Homes that are over the conforming loan limit in Atlanta are known as jumbo luxury homes. In addition to this, jumbo luxury homes in the Atlanta area are currently seeing more favorable interest rates than those for conforming loans. Though historically, jumbo interest rates were between 0.25% and 0.50% higher than conforming loans, they have gotten closer to conforming rates in the last few months.
Refinancing Options For A Better Mortgage Rate
Georgia mortgage refinancing laws are similar to those in most other states. Atlanta has been a hot real estate market for the last few years, and homeowners have often acquired equity in their homes that exceed their mortgage balance. Though other parts of the state have had less successful housing markets, overall, equity levels in Georgia are moderately negative.
Mortgage rates in Georgia are slightly below the national average but still offer several attractive metrics. A recent survey by Bankrate.com found that on Wednesday, August 31, 2022, 30-year fixed mortgage rates were 5.988%, 5.214% for 15-year fixed rates, and 4.375% for 5/1 adjustable-rate mortgages. While these numbers may not be indicative of the exact rate you’ll pay, it’s worth comparing rates with other lenders to find the best deal.
Contact Moreira Team today to find out about our mortgage rates and products.