| Things could be a lot worse in Atlanta, Georgia, | | | | this is what is happening to many distressed |
| compared to the national realty market this area | | | | home owners right now. |
| has been strong, but the pace has slowed. This | | | | You will require an amortization of 25 or 40 |
| slower pace of the realty market does mean that | | | | years, that part is okay, and so is the 5% or 6%, |
| prospective buyers can take their time in choosing | | | | but you require it for preferably 10 years while |
| a home. The cut and thrust of the realty bubble | | | | you get on your feet. The mortgage rate is so |
| days has well and truly burst, but this can only be | | | | low many financial experts would tell you to lock |
| good news for the buyer. | | | | this interest rate in for 10, 15 or 30 years. |
| The worst hit neighborhoods in Atlanta are the | | | | A broker, the bank or your real estate agent can |
| ones that saw the quick escalation of house | | | | use a table to work out exactly what your |
| prices, some of which showed increases as high | | | | repayments will be for a certain amount of loan. |
| as 20% in one year, and they are now simply | | | | For instance, if you think you want to borrow |
| adjusting. Most Atlanta prices have held strong | | | | $100,000 you can be told, in advance, a monthly |
| and Atlanta has not seen the dramatic changes in | | | | amount that this will cost you in repayments. |
| housing prices that has been experienced | | | | You can also work this out for yourself using |
| elsewhere. | | | | some Internet web sites. If this loan is affordable |
| However, in one respect Atlanta has suffered the | | | | for you to pay back, then make sure the loan |
| same fate as the rest of the nation and this is in | | | | 'term' is for several years. It may cost a higher |
| the fact that house sales are slower, therefore | | | | interest rate to 'fix' it for longer, (it nearly always |
| homes are accumulating on the market; the | | | | does) but it is a safety measure. |
| inventory is large. | | | | Most first time home buyers work out their |
| If you are a prospective buyer you now have | | | | affordable loan before they go looking for a |
| the maximum choice, the lowest interest rates, | | | | home. This way they are only going to look for |
| and eager sellers which means that you have the | | | | homes in their affordable price range. Then you |
| right climate in which to bargain over the price or | | | | must add on the house taxes, water bill, utilities |
| conditions of sale. | | | | and all your other expenses. The secret is to |
| Since the government has also ensured that | | | | have your entire expenses amount to a lot less |
| subprime mortgages are off the menu, you | | | | than you earn each month. |
| should be able to negotiate a fair mortgage, if you | | | | Inquiring from a mortgage broker how much you |
| have a good credit rating. One way to be sure of | | | | can qualify for and how much the repayments will |
| keeping your finances at a level that is affordable | | | | be and how long the term of the mortgage will |
| to you is to sign up for a fixed rate mortgage. | | | | be, does not cost you anything and it does not |
| Fixed rate means that the amount of your | | | | commit you to anything. You do not need to sign |
| monthly installments will never fluctuate once they | | | | anything (except maybe a form that allows your |
| are agreed upon and the payment will only change | | | | credit rating to be checked). |
| when the agreed term is up. This is typically five, | | | | It is far more prudent to check out your |
| ten or fifteen years. This period of time must not | | | | mortgage possibilities before you go searching for |
| be confused with the 'amortization period' which is | | | | a house. This way you will be 'pre-approved' and |
| the amount of years it would take you to pay | | | | sellers will take you more seriously. This will give |
| back that loan at that rate. | | | | you more bargaining power to lower the price or |
| So if you get a mortgage with an amortization | | | | ask for extras and also the sale will go through |
| period of 25 or 40 years and a fixed rate of 5% | | | | more quickly. |
| or 6% interest on that loan for a year - that is | | | | If you find a house first, you may be tempted to |
| not what you want. This could mean that after | | | | rush things and accept an unwise financial deal just |
| one year you will be facing a change in your | | | | because you can't risk losing 'the perfect home'. |
| monthly payment plan; it could go zipping up and | | | | |
