How to Find the Best Mortgage Rates Atlanta in 2022

Finding the best mortgage rates entails so much more than just doing comparative shopping. Below are four pointers that will assist you to nab a good interest rate.

You can depend on the honesty of our impartial financial advice. However, you should note that we may get reimbursed by issuers of some products that this article will mention. Keep in mind that any opinions shared here are solely the author. The information provided here hasn’t been provided by, assessed, authorized or backed by any advertiser unless otherwise stated below.

After plummeting for the past couple of decades, mortgage rates may be on the up and up. Given that it’s nowhere near the 15% or more clients paid on 30-year, fixed-rate mortgages during the mid-’80s. Nevertheless, it’s still essential that you obtain the best mortgage rate possible. And that’s what this read will cover.   

mortgage rates

How to Find the Best Mortgage Rates Atlanta in 2022 – 30 year fixed

What Determines Your Mortgage Rate?

7 factors will decide the interest rate you receive on a mortgage:

Property location

The house price and mortgage amount

The FICO credit score of every debtor

Loan term (e.g., variable vs. fixed)

Your down payment amount

Type of loan

Loan duration (e.g., 15-year vs. 30-year)

(Source: CFPB). From what has already been mentioned, I’d include another variable: your lender.

Let’s have a look at each of these mortgage factors and what it will take to be eligible for the cream of the crop mortgage rates.

1. FICO Credit Score

Having a good credit score is the sole best method of saving money on each kind of financing–from car loans to home loans or even car insurance. A great credit score can save you tens of thousands of dollars over the duration of your mortgage loan. In 2022, the Best Mortgage Rates Atlanta are allotted to persons with a 760 FICO score or more.

What do you have to do to improve your credit score? Begin by following these steps immediately:

i).Make sure to pay off all your bills each month. If you’ve got late payment records, request for goodwill modifications to have them scrapped from your overall credit report.

ii).Decrease your gyrating debts. The fewer rotating debt-like credit card debt-you hold, the more your credit score will increase. 

iii).Don’t take out too much credit. Applying for credit recurrently will dent your credit score, so make sure not to overdo it, particularly before making an application for a mortgage.

The above mentioned are the three key pointers for increasing your credit score. You can also have a look at this extended list of tips to get more information.

If you always make a point of paying your monthly dues on time, make sure to register for Experian Boost™. This is a quicker method to increase your credit score. When you pay your phone bill or utility bill on time, your FICO® Score may see a surge. And the best part is that it is absolutely FREE!

Experian Boost Disclaimer- Outcomes may contrast. Some applicants may not see approval odds or improved scores. Also, not all lenders utilize these credit files, and every lender uses scores that have been given an Experian Boost. 

If you aren’t aware of your FICO score, there are multiple methods of getting it. Firstly, you can purchase access to your credit score directly from myFICO. It isn’t costly and you receive your FICO credit rating from all three credit bureaus. Given how every credit report of a bureau can slightly contrast, this will provide you with a clear picture of what prospective lenders will see.  

If you’re not willing to pay for access to your score, a lot of credit card issuers provide these services at no cost. Here are credit cards that provide credit score access.

In conclusion, you can have free accessibility to credit scores using sites such as Credit Karma. Note that the score isn’t contingent on the FICO formula. Still, it does a pretty excellent job of imitating the FICO score. In doing so, you can identify any likely last-minute problems in detail. 

2. Home Price and Mortgage Amount

The price of the house and the amount invested also influence mortgage rates. In this case, mortgage loans fall under three main categories 

Conforming: These are loans of $424,000 or below.

Super Conforming: For persons that reside in certain pricey locations of the country, mortgage loans can increase to $636,150 for one unit and still be eligible for super-conforming.

Jumbo: These are mortgages that supersede the limits of Super Conforming and Conforming.

The main point here is that all things held constant, a conforming loan will have a reduced rate compared to a super conforming loan. Subsequently, a super conforming loan will have a reduced rate compared to a jumbo mortgage. 

When I used our mortgage rate calculator, I discovered that the difference between a jumbo and a conforming mortgage was almost 50 basis points. 

Bottom line: If you want to get the least possible mortgage rate, go for a conforming loan if you can. If you stay in a certain costly locale, you should go for a super conforming loan.

3. Property Location

As already aforementioned, costly places of the country will be eligible for super conforming mortgages. In cases like that, the rates will be decreased compared to if the mortgages were jumbo. Investing in rural locales can also have an effect on your loan choices. Look for a range of mortgages to check what various lenders will provide for the property location. 

Related: Use Policygenius to peruse and compare homeowners insurance quotations online.

4. Down Payment

Lenders aren’t inclined to take as few risks as possible. The more they are exposed to risk, the more you can expect the interest to increase in order to cushion their prospective losses. This implies that if you’ve got equity in the house upfront, you can expect your interest rate to be diminished. 

Look at it this way: You purchase a house and then become a defaulter a year on. Will the lender recover their cash if you had laid down 5% or if you out 20%? A larger down payment will more likely make the lender give you the money since they have a higher probability of obtaining their money during a foreclosure sale in the event you become a defaulter. 

Although you can still receive loans even if you don’t reach the 20% down payment mark, it’s still a good baseline to reach. If not, you’ll see yourself paying for private mortgage insurance (PMI) AND increased interest rates.  

5. Loan Terms

Again, creditors will generally provide you with a decreased interest rate in an attempt to mitigate risks. Hence, a decreased loan term will reduce your interest – often considerably. You may see yourself paying a small amount of interest on a 15-year plan compared to a 30-year mortgage plan, but you’ll receive an increased payment. 

The interest shouldn’t be the main variable taken into account when determining whether you should enroll in a 15- and a 30-year mortgage. But it’s an integral one.

6. Fixed vs. Variable Rate Mortgages

Regardless if the interest rate is variable or fixed impacts the rate. All things held constant; a variable mortgage rate will begin with a diminished rate compared to a fixed mortgage. Just keep in mind that a variable mortgage rate will surge in a rising-rate atmosphere. And if rates increase considerably, so will the payments you make.   

Adjustable-rate mortgages can also be an alternative method of taking advantage of low rates. Generally, an option such as a 5-1 ARM, whereby you have a fixed rate of 5 years and then fluctuates annually following that, will begin with a decreased interest rate beforehand. Yet again, given that it’s a rising-rate environment, your payment and interest rate will increase as well.

7. Type of Mortgage

There are various kinds of mortgage products. On top of commercially available mortgage products, there are also USDA, FHA, and VA loans. Every one of these mortgage plans comes with its terms & conditions. Also, the mortgage rate contrasts from one plan to the other.

Some of the plans are specially configured for low-income house buyers. In cases like these, you have to attain stringent income prerequisites. But as a substitute, you could lock in a below-market-rate interest, or extended-term.  

If you don’t match the income requirements, it would be in your interest to choose a conventional loan instead. Loans such as the FHA 30-year mortgage may have extra costs. For example, the FHA loan levies PMI for the entirety of the loan. ( The majority of loans are configured to take away PMI after you’ve attained 20% home equity.)

So Who Gets the Best Rates?

When you consider all the mentioned categories, what will you have to do to obtain the finest mortgage rate available?  Satisfy the following prerequisites:

 Make sure that you have obtained at least an 800 credit score 

Apply for a loan not exceeding $424,000

Reside in an averagely cost-effective place, but not a place that requires unique mortgage considerations

Go for a 15-year loan

Put at least 20 percent down.

Select a variable interest rate 

Choose a conventional loan, unless you are eligible for a bespoke program that comes at a reduced rate.

It’s important to note that not all debtors will tick all of the aforementioned boxes. And just, generally speaking, not all of the factors are in your power. What’s more, they might not make a difference in your application to start with.

Therefore, the best thing to do is:

Better your credit score number as much as you can

Purchase a cost-effective house

Put down at least a 20% down payment

Select the loan plan that is suitable for your case.