Compare The Best Mortgage Rates in Homer, GA

Compare Homer, GA Mortgage and Home Loan Rates

When you are on the search for a new home or are considering buying a new one, finding the best mortgage rates possible in Homer, GA will be an important part of the decision. Using MyRatePlan will help your search go smoother by giving you the tools and information that is needed right at your fingertips. You don't want to end up paying a higher interest rate than you need to when you are buying a home, and by comparing different mortgage rates, we can help make sure that you won't!

Different Types of Home Loans Available In Homer, GA

There are different loan facilities for the many buyers available. The loan products maybe fixed-rate mortgages or variable mortgages. Here are some of the most common loan products and for whom they are best tailored:

Fixed-rate mortgages - In Homer, GA, interest accrued from these loans does not change during its term of repayment. With fixed-rate loans, your rate remains fixed for the life of the mortgage. It will remain constant monthly and yearly. The same applies for long-term loan facilities.

Adjustable-Rate Mortgage Loans (ARM) - As the name of this loan suggests, the interest rates change from time to time. Normally, the interest rate for this type of home loan will change yearly. In practice, the interest rates applicable for ARM remain fixed up to a fixed duration, and change afterwards. For that reason, this loan product is known as a “hybrid”. The loan product starts with a fixed rate, and later on switches over to an adjustable rate. Consider the following situation, a 5/1 adjustable rate mortgage means that the interest rate remains fixed for the first five years and after that it begins to change yearly.

FHA Home Mortgages in Homer, GA

Buyers must decide on whether to get a fixed-rate home loan or an ARM, but that isn't the only decision. They also need to figure out if they will go with a mortgage backed by the government or a more traditional home loan. Those traditional home loans don't have any insurance provided by the federal government. There are three types of mortgages that have government backing, which are FHA loans, USDA loans and VA loans.

An FHA loan is backed by the Federal Housing Administration, which is the Department of Housing and Urban Development's program for insuring home loans. One great aspect of FHA mortgages in Homer, GA is that it's not just first-time homebuyers who can get them, but any buyer. FHA mortgages have benefits for both the borrower and the lender. The borrower can get their home loan while making a significantly lower down payment, sometimes as little as 3.5 percent of what the home costs. The lender is protected from any losses due to a borrower defaulting by the government insurance. The drawback for borrowers is that they're required to cover the cost of mortgage insurance, which means larger home payments every month.

Refinancing a Home Loan in Homer, GA

Although the term is technically refinancing, how this process really works is the borrower applies for a brand-new mortgage, which they use to pay the previous mortgage. The point of refinancing is that the new mortgage has a better interest rate than the old one, and this means that the borrower saves money by paying less interest on the remainder of their loan. The borrower should note any extra costs that come with the new mortgage, as there could be fees and closing costs involved. It's important that they do the math to make sure they're actually saving money when those fees are taken into account. However, if the borrower is making the switch from an ARM to a fixed-rate home loan, that's always a good move because they're not at the mercy of what happens with interest rates, which tend to increase, not decrease. When refinancing a mortgage, it's important for the borrower to get their credit score over 700 and minimize their debt-to-income ratio to look as low risk as possible to potential mortgage lenders and secure the lowest possible interest rate. The good news is that even a borrower who doesn't meet all the highest standards could still find a mortgage in Homer, GA with a low interest rate.