If you’re considering buying a home in 2021 now is the perfect time to take advantage of historically low interest rates. Interest rates and choosing between different financing options can be intimidating, especially for first time home buyers. With interest rates this low, there is an even greater opportunity for first time home buyers to find their dream home at a great rate and current homeowners to address their needs in a new home. You might be asking yourself, “What type of loan is best for me?”
Mortgage rates reached an average of 2.77% for a 30-year fixed-rate loan in February 2021. Whereas, February 2020 and 2019’s average rates of 3.47% and 4.37%, respectively, were much higher than today making mortgages more affordable for buyers. Freddie Mac has forecasted the 30-year mortgage rates to average around 2.9% throughout 2021 (Yahoo Finance). As a first time home buyer, it is important to compare multiple financing options in order to give yourself the opportunity to save money in the long run.
To start, your mortgage rate considerations should be based on where you plan to live and how long you plan to stay put (Realtor.com). With Conventional loans, there is a common misconception that you are required a 20% down payment for your home purchase. When in reality you can actually have a down payment as low as 3% with conventional financing. Another popular loan type is the FHA loan where the down payment is as low as 3.5% and has a less strict credit score requirement. There’s a third loan type available to our military service members who are purchasing a primary residence. This $0-down mortgage option is called a VA loan and is mainly designed for properties in “move in ready condition.” Compass also provides Bridge Loan Services
, “A simple solution to bridge the gap between the home you have and the home you want.”
Atlanta is one of the country’s most dynamic real estate markets. From mastering the difference between towns to picking the best loan for you, there is a lot to learn. Jimmy Hutchinson is committed to guiding, educating and advocating for his clients, striving for seamless transactions and satisfying experiences. This Atlanta Buyer’s Guide
outlines the fundamentals needed to complete the transaction for your dream home. Contact Jimmy today to receive high quality realtor service and a look into exclusive properties in Atlanta at great rates!"I have partnered with some of Atlanta’s most trusted loan officers who are readily available to speak with you on all things financing. They can answer questions like ‘What kind of interest rate can I get?’ or ‘What will my monthly payment be?’ Lenders are very important to real estate transactions and it is key to work with someone who has a proven track record."
- Jimmy Hutchinson