Georgia, also known as The Peach State, is located in the Southeastern region of the country. The capital and largest city is Atlanta. Georgia is home to Martin Luther King, Jr. and the Masters Golf Tournament. The state produces the most peanuts, pecans, and peaches in the country. It is a state full of history. Out of the 10 million people who live in the state, many people are looking for a mortgage loan. If you need a loan, it is important that you understand how mortgages work in the state.

Georgia Mortgage Laws

You can find mortgage laws of Georgia at http://rules.sos.ga.gov/nllxml/georgiacodesGetcv.aspx?urlRedirected=yes&data=admin&lookingfor=80-11. The law states that they must provide you a copy of a loan estimate sometime within three days of submitting the application to seven days before closing the loan. A closing disclosure should also be given to the borrower. These documents must be submitted in writing. The lender is required to inform you of the consequences of not making payments on the loan. All documents must be signed by the lender. Lenders cannot provide you with false or misleading information. All lenders in Georgia are required to be licensed by the state.

Georgia Mortgage Loan Rates

According to http://www.bankrate.com/georgia/mortgage-rates.aspx, the rate in Georgia for a 30-year fixed loan stands at 4.14%. The rate for a 15-year fixed loan is 3.31%. If you are looking for an adjustable rate mortgage, the rate for a 5/1 mortgage is 3.53%. Rates for refinancing are just slightly higher. For a 30-year refi loan, the rate is 4.21%, and a 15-year refinance loan stands at 3.32%. If you choose a 7/1 adjustable rate refinance, the rate is 3.84%. The rates are about the same in all cities of the state.

Georgia Housing Market Outlook

In Atlanta, the largest city in Georgia, the average home is valued at $199,700, according to http://www.zillow.com/atlanta-ga/home-values/. Over the last year, the home prices in Atlanta have increased 11%. Experts predict that these prices will continue to increase over the next year. In fact, prices could increase up to 6.5%. The home prices in Atlanta are just above the state’s average. The median home value in the state stands at $151,400. They are expected to increase 4.5% within the next year.

Types of Georgia Mortgage Loans

When obtaining a mortgage in Georgia, you need to make sure that you find the best loan for your needs. You want a loan that will save you the most money. Some of the types of loans in the state include:

  • Conventional Loan: These loans are not insured by the Federal Government. They usually require higher down payments.
  • FHA Loan: This government-backed loan is great for first time home buyers. The down payment amount required is low. However, you must carry private mortgage insurance.
  • VA Loan: If you are a military service member or retired military, this is a great loan for you. No down payment is required.
  • Fixed rate loan: If you think you will be staying in your home for a long period, this is a good option. Your rate will remain the same over the life of the loan. The rate will be locked in, and it will not change.
  • Adjustable rate loan: With this mortgage, your rate will change depending on the current market. Therefore, your monthly payment amount could change.
  • Home equity loan: If you need some extra cash, you can use the equity in your home to obtain a loan.

Choosing a Georgia Mortgage Lender

It is important that you find the best mortgage lender available who offers the lowest rates. Before you apply for a mortgage, you might want to check your credit score. A higher score will mean better rates. You can then compare the rates of several mortgage lenders. Before you sign an agreement, make sure you carefully read the terms and conditions. Make sure you know exactly what you are going to be paying for. Read reviews from other customers, so you can discover the pros and cons of the lender. After you find the right lender, you can apply for the loan, and you can enjoy the benefits that come with being a home owner.