The Georgia real estate market was decimated by the housing bubble. Georgia ranks seventh in the nation in foreclosures and by the end of 2009 13% of mortgage-holders were at least 30 days delinquent on their loan. Under current conditions as many as 350,000 homes could be lost to foreclosure between now and 2012, damaging the equity of neighboring homes to the tune of $13 billion.
Almost one out of every four Georgia mortgages is underwater, one of the highest rates in the nation. Home prices in Atlanta dipped 4% over 2009.
Despite the bad news, there are some signs that the worst of the storm has passed. Home prices rose across the nation in December, an indication that the housing market is slowly but surely recovering. The S&P/Case-Shiller 20 city home price index showed a seasonally adjusted .3% price increase from December to November. Nationwide this marks a 7th straight month of increasing home values.
While the Atlanta market was stagnant in December posting a 0.0% price change, there has been modest improvement since the spring. The price increase can be attributed to low Georgia mortgage rates, government incentives (such as the first time home buyer tax credit), and depressed home prices. After 13 consecutive quarters of decreasing home values in Georgia, housing prices increased in the 4th quarter of 2009.
While the worst of the recession may be over, many expect that the housing market in Georgia will make a slow recovery that will take at least two years. Nevertheless there are a bevy of reasons to consider a home purchase in Georgia. Foremost among them are historically low interest rates. Take a look at our low current Georgia mortgage rates for some of our most popular mortgage options:
| Loan Type | Loan Amount | Rate | Monthly Payment | Total Principal and Interest Over Life of Loan |
|---|---|---|---|---|
| Georgia 30 Year Fixed Conventional Mortgage | $250,000 | 4.5% | $1266.71 | $456,016.78 |
| Georgia 15 Year Fixed Conventional Mortgage | $250,000 | 4.125% | $1864.92 | $335,685.41 |
| Georgia 5/1 ARM Conforming Mortgage | $250,000 | 3.0% | $1054.01 | * |
Note: Current mortgage rates change each business day, often several times throughout the day. Rates quoted at 2:00 p.m. (EST) on Tuesday, February 23, 2010.
*All rates are calculated for borrowers with a credit score of 740+.
*All rates shown are based on a 30-day lock for a purchase or rate/term refinance.
*All rates are calculated with 2 points, 80% LTV, and $2000 in closing costs.
*Due to the changing nature of interest rates, it is not possible to accurately compute the total amount a borrower would pay with an adjustable rate mortgage over the life of the loan.
Many homeowners in Georgia have taken advantage of low interest rates to refinance their home. Take for instance someone who got a $250,000, 30 year fixed rate mortgage 3 years ago in February 2006. The average mortgage rate (with no points) was around 6.25%. If that customer refinances at the current interest rate (with no points) of 4.875%, they would stand to save about $200 per month, and close to $80,000 over the life of the loan. This assumes a worst case scenario where the refinance amount is equal to the amount of the original mortgage.
With home values slowly rising and impending interest rate hikes by the federal reserve, there may be no better time than now to refinance or purchase a new home. Our experts have helped many Georgians with all their mortgage questions and needs. For a professional consultation please do not hesitate to contact us at 877-868-2503.
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