Did you know?

• Over 50 percent of all Valentine’s Day cards are purchased in the six days prior to the holiday?
• 141 million Valentine’s Day cards are exchanged annually, making Valentine’s Day the second-most popular greeting-card-giving occasion.
• $367 million: We Love our Pets – collectively, consumers spend this much on Valentine’s Day gifts for their pets each year.
• $126.03: The average expected amount, per person, that Americans will shell out for the holiday. That’s up 8.5% from last year. Consumers are expected to spend the most on jewelry, at a collective $4.1 billion.

Are you a fan of the Google doodles? Today, Google put up a video that helps remind everyone what all the fuss is about today.

What’s your favorite part of the holiday? Do you participate, or think the holiday is all hype? Either way, Happy Valentine’s Day from The Mortgage Guys in Atlanta, GA!

What is the HARP Loan?

The Home Affordable Refinance Program was issued in 2008 when home values dropped and was intended to help struggling homeowners make their mortgage payments.

The newly modified Home Affordable Refinance Program will allow more homeowners to refinance as it allows anybody to refinance their mortgage, regardless of how much the owe and how much their home value has dropped.

The modified HARP loan  program removes a stipulation from previous refinance regulations that stated that homeowners who owed an amount on a loan that was 25 percent, or more, greater than the home’s value would not be eligible to refinance. The removal of this stipulation allows up to an estimated 4 million homeowners to refinance.

Who Qualifies for the HARP Loan?

To qualify for a HARP mortgage, homeowners must first have a mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac. Additionally, they must have a one to four unit home as their primary residence, be current on their mortgage (no late payments more than 30 days in the last 12 months), have a home that has decreased in value, and have a first mortgage not over 125 percent of the home’s current value.

Currently, the HARP loan program is available until June, 30^th, 2012. If you want to take advantage of some of the HARP program’s great opportunities, give The Mortgage Guys Atlanta a call so we can help refinance your home loan.

Image courtesy of Flickr.

Lower monthly payment If you plan to stay in the home long enough to break even on the refinance costs, a lower interest rate and payment will result in greater monthly cash flow.

Shortening the amortization period. If your lower interest is substantially lower than your previous rate, you might want to consider shortening the term of your loan in exchange for a slightly higher mortgage payment. Before you do this, figure out if you could invest that extra principal portion elsewhere for a better rate of return.

Are you interested in refinancing your home loan? Here are a couple of things to keep in mind:

Information for Refinancing Your Home Loan

Your Debt-to-Income Ratio – Your DTI is calculated by dividing your total income by certain debts you have, such as your principal and interest mortgage payment, property taxes, and homeowners insurance (PITI); any credit card or unsecured debt payments; student loan payments, and any vehicle payments. If the monthly payments for those debts take up more than 45% of your income, you will not qualify for a loan.

Your Loan-to-Value Ratio- Your (LTV) is another important component for qualifying for a loan. Your LTV is calculated by taking the current market value of your home (what you can sell it for in today’s market) and dividing it by the balance on your mortgage or mortgages.

Your Credit Score – Your credit score is an important factor in getting you the best possible rate.

Whatever your reasons, The Mortgage Guys Atlanta want to be the team you trust and come to with all of your mortgage and home refinancing questions. Give us a call and we’ll do whatever we can to give you the best rate possible.

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Don’t forget to file your homestead exemption. A homestead exemption is a reduction in homeowner’s property taxes. To qualify, the homeowner must apply for this exemption on or before April 1^st.

Once granted, the homestead exemption is automatically renewed each year as long as you continually reside in the home under the same ownership. The home must be your legal residence  for all purposes including the registration of your vehicles and the filing of your income tax. You cannot file for homestead exemption on rental property, vacant land or on more than one property. In addition to basic homestead exemption, there are additional exemptions for residents age 62 and older and/or disabled and disabled veterans. However, you must apply for these exemptions in person.

To see what exemptions you qualify for, visit the tax assessor’s office website for your county. Homeowners may need to provide their Warranty Deed book and page, proof of residence, social security numbers, driver’s license and car tag information. Check with your county’s page for specific requirements. We’ve included links for the major metro Atlanta counties for your convenience below.

If you have any questions in regards to filing your homestead exemption, don’t hesitate to give The Mortgage Guys a call. We’re happy to help!

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Here’s the list of county links and the county office telephone number:

Fulton County – (404) 612-6440

DeKalb County – (404) 298-4000

Gwinnett County – (770) 822-8800

Cobb County –  (770) 528-8600

Clayton County –  (770) 477-3311

Cherokee County –  (678) 493-6122

Henry County –  (770) 288-8180

Forsyth County –  (770) 781-2106

Douglas County –  (770) 920-7272

Fayette County – (770) 461-3652

Paulding County –  (770 )443-7606

The 203(b) FHA Home Loan Program

There are different FHA home loan programs to consider.  The most popular home loan for first time home buyers is the 203(b).  This home loan is a standard fixed rate loan for 3-5%.  The FHA loan is not actually the lender, but the insurer of the loan.  203(b) has flexible credit requirements, which is perfect for younger home buyers who do not have a long history of credit, or those who have had a few credit problems in the past.  Home buyers who are helped with the down payment as a gift is acceptable as well.

FHA loans have become attractive to both buyers and mortgage lenders.  Most new home buyers should not have a problem obtaining FHA financing.  When looking for home loan programs, take a close look at the 203(b) FHA program.  If you have any questions about FHA loans in Smyrna, GA or the metro Atlanta area, please contact The Mortgage Guys to help you along the way to buying your first home.

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Why You Should Buy a Home in Atlanta

• Mortgage rates are still extremely low.  Despite the fact that the housing market is starting to come back, mortgage rates in Atlanta are at all time lows.
• Home prices are still extremely low.  As of now, home prices in Atlanta are still extremely low.  Home buyers can find great deals, even on new homes being built.  Most experts agree that the low home prices are about to start moving up.
• You have a wide variety of options… for now.  While mortgage rates and home prices are low, you have a variety of home buying options in Atlanta.  From new homes to foreclosures, buyers have a lot of options in terms of house size and location.
• Owning a home provides you with freedom.  Do you really want to keep paying rent, rather than investing into your future?  Owning a home allows you the freedom to modify your own property.  As rent prices are going up, mortgage rates are at historic lows.  Why throw your money away into your landlord’s pocket? Renting isn’t such a great deal after all.

There is a rare opportunity for home buyers in Atlanta, GA right now.  If you’re wondering what you can afford, contact the Mortgage Guys Atlanta for a free mortgage quote or use our free mortgage calculator.

Typically, most home buyers in Smyrna or Metro Atlanta can expect to make a down payment between 10 and 20%.  Sometimes saving can be an extremely difficult task.  It typically takes sacrifice and diligence, but it can be done!

Steps to Saving for a Down Payment

• Try to set a price range for the home and local area you are considering.  If you are comfortable with a $200,000 home in Smyrna, then it will be easier to set your target down payment.
• Automatically save from your checking account every pay period.  This way you will be less tempted to not make the transfer manually, after receiving your paycheck.  If you can afford to, you can always add a little extra money into the savings account.
• Cut unnecessary things out of your life.  If you’re really serious about saving, maybe you can cut your TV cable bill from the $300 a month package to the $50 basic deal.  Once you start looking around at all of the things you don’t need or really use, you can begin to make cuts and put the money into your down payment savings account.
• Make budgets and stick to them.  Dave Ramsey has amazing tools for money management.  Take advantage of them now and for the rest of your life.

Do you have any savings tips that you would like to share with others?  Leave a comment!

If you need help with the home buying and mortgage approval process, please contact The Mortgage Guys in Atlanta.

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The mortgage secures your promise that the money borrowed for your home will be repaid.

According to Wikipedia:

A mortgage loan is a loan secured by real property through the use of a document which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.

Components of a Mortgage:

1. Mortgage Approval:

Qualifying for a mortgage requires meeting a pre-determined set of guidelines established by a lender, which may include credit history, income, employment and assets.

In addition to personal qualifying factors, a property must also meet certain standards set by lenders before a borrower can obtain a mortgage loan secured by real estate.

2. Mortgage Payments

On a traditional 30 or 15 years fixed rate mortgage program that involves principal and interest, each payment made is divided into two parts (we’re not including taxes or homeowners insurance as part of this discussion):

The first part of the mortgage payment, which is commonly referred to as principal, goes to paying down the initial amount borrowed.

The second part is the interest paid for the money borrowed to purchase the property.

The amount paid in interest decreases each month, as the amount paid towards the principal balance increases. This apportioning is referred to as amortization.

Other types of mortgage payments available can include options for paying interest only or a teaser rate.

Either way, it is extremely important to have a solid understanding of the full payment and terms before moving forward with a particular option.

3. Mortgage Programs

Mortgage Programs come in many different types of flavors and colors depending on the down payment and/or monthly budget a borrower has been approved for.

There are also federally insured mortgages, such as FHA or VA loans, which have more flexible qualifying guidelines.

4. Closing Costs / Fees

The actual cost of obtaining a mortgage mainly depends on whether or not the borrower is paying points for a lower mortgage rate.  In some cases, there are also other loan processing and underwriting fees associated with the work involved in the transaction.

Fortunately, there are several consumer protection policies implemented by the government to help borrowers understand their options during the initial mortgage pre-qualification process. However, please keep in mind that there may be other closing costs not associated with a mortgage or real estate transaction to be aware of. Appraisal, pre-paid property taxes, insurance and interest, HOA dues and inspections are a few additional out-of-pocket expenses you should budget for.

5.  Mortgage Rates

While mortgage interest rates may change several times a day, there are a few market factors you can pay attention to which may impact your final payment.

Whether you’re shopping for the best rate, or trying to determine the difference between the Note Rate and APR, it definitely helps to understand what questions to ask a mortgage lender about your specific loan scenario.

In Smyrna, GA and the Greater Atlanta area, new homes are being built once again.  The best news for home buyers, along with amazing mortgage rates, is that they are still being sold below market pricing.  The Atlanta area is seeing soaring home sales.  In a recent article from HousingZone.com, they posted great news, reporting that Atlanta metro area home sales are up 33.4% from 2010.

As you can see, the housing market in Atlanta is making a major comeback while rates and prices are still extremely low.  The recent data indicates that Smyrna and Atlanta buyers are in a great position with many options to find a new home.

Are you looking for a home mortgage in Smyrna or the Greater Atlanta area?  Contact the Mortgage Guys or get a quote now.