Mortgage Refinance Options in Atlanta, Georgia
Atlanta is the most populous city in the state of Georgia, having a population of 483,108, and is also its capital. There are many types of mortgage loans available in Atlanta, Georgia that individuals can make use of. These loans can be taken up by people already residing in the city and those who wish to move in to this city.
A conventional mortgage is one of the types of home loans that is guaranteed and issued by Freddie Mac and Fannie Mae. It is the most common non-government mortgage available today. For a borrower to qualify for a conventional mortgage, certain requirements must be met: a down payment of at least 5% and the credit score of the borrower to be 620 or above.
Mentioned below are the few types of conventional mortgages:
This is the most common type of conventional mortgage and is usually a 30-year fixed rate mortgage. This means that the monthly mortgage rate does not change at any time during the 30-year period and remains fixed. This type of loan is also considered to be the least risky amongst all.
This type of conventional mortgage has a fixed mortgage rate for a specified term and once that term ends, then the rate can be adjusted at intervals that were predetermined at the commencement of the mortgage agreement. This rate will then continue for the remaining life of the loan. The initial rate on an ARM – Adjustable Rate Mortgage, as this type of conventional mortgage is most commonly known as, is generally lower as compared to a fixed rate mortgage. Thus, this option seems more attractive to the borrowers. However, a majority of the borrowers prefer to refinance after the end of the original fixed rate term.
Usually, a mortgage payment comprises of a principal amount and an interest payment. However, this type of payment is a payoff for the accumulated interest only and does not diminish the mortgage principal. These types of mortgages usually have a period of 5-7 years of interest-only payments, after which the principal payment becomes mandatory.
The mortgage term agreements of any of these three types of conventional mortgages include all the necessary information, including the monthly mortgage payments. However, to double-check the accuracy of these payments, refer to MortgageRefinance.com and use our mortgage calculator to provide you with the best estimates.