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Mortgages Types for
Atlanta, Georgia
If you are planning to
buy a home in Atlanta, Georgia, most likely you will
need to take out a mortgage using your current home
as security. A mortgage is basically a home loan
that employs real estate properties as security.
There are different types of mortgages offered in
Atlanta, since competition between mortgage lenders
is quite intense.
Types of mortgages
offered in Atlanta
1.
The conforming loan – Usually, a conforming
loan offered in
Atlanta will offer a maximum loan
amount of $417,000 (the actual amount may differ
from lender to lender.)
2.
A jumbo loan – In this loan, the minimum loan
amount supplied by your Atlanta
mortgage lender is $417,000.
3.
The 30-year fixed rate loan – During
the whole 30 years that the loan is applied, the
borrower will shoulder 360 monthly payments, thus
completing all payments. The fixed rate guarantees
that the interest will not fluctuate during the
30-year pay period.
4.
The 20-year fixed rate loan – this
loan functions under the same principle as a 30-year
fixed rate loan. However, the difference is that a
20-year fixed rate loan requires just 180 months of
payments.
5.
The 15-year fixed rate loan – Under
this loan, the pay period takes 15 years in all.
(One observation about fixed rate loans are that a
lender will assume more risk if he agrees to a
longer pay period.)
6.
An interest only loan – This type of
loan requires that the borrower pay only a certain
level of interest, while payments on the principal
are waived for a particular pre-set period. While
interest is the sole payment being made, the loan
balance stays the same.
7.
Interest only 10/1 ARM – This is a
variety of interest only mortgage that features a
steady interest rate for the first 10 years. After
that, a yearly adjustment of the interest rate will
be computed by the lender.
8.
Interest only 30-year fixed – In this
type of loan, the interest rate stays the same for
360 months. During that time, the initial 180
monthly payments are computed using the interest
rate and the loan balance. The 181st
monthly payment triggers computation of principal
and interest, with complete amortization achieved in
the next 15 years.
9.
B/C Credit loan – Borrowers who have
a poor or negative credit history are granted this
type of loan. To distinguish this kind of loan from
others, borrowers have to pay higher related
expenses or interest on a B/C Credit loan.
10.
No income/no asset verification loan
– The borrowers who avail of this kind of loan may
want to withhold (or simply have no way to) disclose
their exact income and assets.
11.
5-year balloon loan – this loan
applies a 5-year period for paying fixed monthly
amounts. When the five years are over, the borrower
has to pay the outstanding principal balance in
addition to unpaid interest.
12.
7-year balloon loan – what makes this
loan different from its 5-year version is that the
pay period is 7 years (rather than 5.)
There are many other
types of loans offered by Atlanta mortgage lenders.
These are just some of them. Be sure to get fully
informed about the mortgage being offered to you
before you enter into any agreements.
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