If you want to refinance your Metro Atlanta mortgage, a few key things are going to be expected of you. Find out what is expected if you want to refinance your Metro Atlanta mortgage in this video…

We recently told you about FICO score changes that were being made that could make getting a mortgage easier for Metro Atlanta home buyers.

Well, not so fast.

What nobody mentioned about the score, dubbed FICO Score 9, is that most Metro Atlanta home buyers aren't likely to see any direct benefit from it any time soon, very possibly not for years.

That's because the two dominant financing sources in the mortgage market — Fannie Mae and Freddie Mac — aren't planning to use the new score in evaluating loan applicants for the foreseeable future. And major banks and mortgage companies aren't jumping to adopt it either.

None of this detracts from the merit or potential value to consumers of FICO's new score. The company says that by separating out medical debt-collection issues — which are commonplace negatives in millions of consumers' credit files — from other types of collection actions, the FICO 9 model will more fairly rank the actual risks posed by some applicants compared with others. For borrowers whose sole major negative credit file account is an unresolved medical debt, Fair Isaac estimates that the new model will increase scores by a median 25 points.

FICO 9 also is designed to more fairly treat applicants who have limited accounts on file with the credit bureaus — often young, first-time Metro Atlanta home buyers or consumers who have made minimal use of credit cards and other forms of personal credit.

Metro Atlanta Home Buyers Not Likely To See Any Help

So on the surface, the advent of the new score is a big deal. But here's the real world: New FICO score models only matter in the mortgage market if lenders choose to use them to evaluate applicants. And, based on discussions with leaders in the mortgage field, FICO 9 is a long way off from adoption. It's not likely to help many Metro Atlanta buyers any time soon, despite the hype.

Among other reasons, it can cost substantial sums of money to retool complex automated underwriting systems, especially at Fannie and Freddie. Lenders have to weigh the costs and benefits.

Will the relatively small improvements be worth the expense and hassles? And with all the other regulatory changes mandated by recent financial reform legislation, do we have the time and manpower to devote to analyzing the effects of FICO 9?

The sobering answers for Metro Atlanta home buyers appear to be no.

But stay tuned. As with anything else, these things are subject to change. And if and when they do, we'll let you know right here.

Check out our other articles and news affecting Metro Atlanta home buyers when it comes to mortgages by clicking on the Atlanta Mortgage Info link to your right under Atlanta Real Estate Categories.

Metro Atlanta mortgages may be easier to get soon. A new calculation of credit scores will soon make it easier for millions of Americans to qualify for car loans and credit cards. The new methodology also could provide easier access to Metro Atlanta mortgages after tight post-recession lending standards shut millions of potential new homebuyers, particularly young Americans, out of the market.

The Fair Isaac Corp., which issues credit scores used in 90 percent of U.S. consumer lending decisions, says it will give less weight to unpaid medical bills when assessing creditworthiness, starting this fall. It also won't penalize a borrower's credit score if they've had bills settled with a collection agency.

FICO Changes for Metro Atlanta Mortgages Great for Consumers

Under FICO's current methodology, many potential borrowers either have been flat-out denied access to credit or forced to pay higher interest rates. Matt Fellowes, CEO of workforce optimization firm HelloWallet and a former Brookings Institution fellow, calls the changes "terrific improvements for consumers."

The revisions weren't necessarily a response to people's failures to pay medical bills, but rather intended to address punishment for bills they might not even know they had.

Over half of collections on credit reports are associated with medical bills, according to the Federal Reserve, and a May Consumer Financial Protection Bureau study found that some credit scoring models may overly penalize consumers because of medical debt. The score disadvantage – up to 25 points – could cost someone tens of thousands of dollars in interest over time on bigger loans like Metro Atlanta mortgages.

This move will ultimately make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher rates for Metro Atlanta mortgages because of flawed credit scores.

The advice from most mortgage professionals to first-time home buyers is to begin sprucing up their credit at least six months before applying for any Metro Atlanta mortgages. FICO scores seen by lenders are not what are sold to consumers by the three national credit reporting agencies. The only way consumers will know for sure how their credit looks to lenders is by applying for pre-approval or filling out a mortgage application.

Check out our other articles and news affecting Metro Atlanta mortgages by clicking on the Atlanta Mortgage Info link to your right under Atlanta Real Estate Categories.

Everyone knows you need money to buy a house, and that usually comes in the form of Metro Atlanta mortgages to finance those homes. But not everyone is clear on how Metro Atlanta mortgages actually work.

Here's a quick look at the financial processes behind Metro Atlanta mortgages…

We’ll keep you updated right here on Metro Atlanta mortgages and the trends that either cause the market to make it easier, or more difficult, to get those mortgages in the future. In the meantime, check out our other articles and news affecting Metro Atlanta mortgages by clicking on the Atlanta Mortgage Info link to your right under Atlanta Real Estate Categories.

Many potential homebuyers have it all wrong when it comes to the order of shopping for a home. Metro Atlanta mortgage shopping needs to start long before the home shopping process begins.

If you follow the five golden rules of Metro Atlanta mortgage shopping, life is a lot easier when it's time to start looking for that perfect home.

We have lots of tips and advice for Metro Atlanta mortgage shopping here at our website. You can easily find those other articles and news affecting Metro Atlanta mortgages by clicking on the Atlanta Mortgage Info link to your right under Atlanta Real Estate Categories.

If you can't find what you're looking for when it comes to Metro Atlanta area mortgage shopping, along with the right tips and advice for your individual situation, just call us and we'll direct you to a mortgage expert who can answer all of your questions for you.

If you've closed on a home and you're just starting out with a Metro Atlanta mortgage on that home, there are some common mistakes you need to be aware of. They generally come down to making sure you clearly communicate what you're intending to do with the money you're sending in for your Metro Atlanta mortgage.

Common Metro Atlanta Mortgage Mistakes Many People Make

Sending in extra money without explaining what it's for

Not that your lender will complain if you send in extra money, but there are a few different things you could be doing – prepaying before going on vacation, paying down your principal or adding money to your escrow account. Without telling your lender why you're sending in extra money, they may not know what to do with the extra funds.

Putting a note in the memo section of your check

You may think you've been explaining what your money is for on your check, but depending on who processes your payment (e.g. a bank or specifically mortgage institution), they may not have access to these notes. And when paying online, you may not have anywhere to explain extra payment amounts.

Forgetting to add your loan number on your check

Maybe you have multiple loans with your lender, or maybe a family member is paying on your behalf one month. Either way, it's best to include the loan number you want the funds to go to, because, unlike notes on your check, whoever is collecting your payments – the lender or the bank the lender works with – will be able to use that information to correctly apply your payment.

Not understanding the difference between recurring payments through your lender and bill pay through your bank

With many Metro Atlanta mortgage companies and banks you can set up recurring mortgage payments (sometimes called auto draft or auto pay) or set up bill pay through your bank. Make sure you're clear on which one you're using.

For example, if you set up recurring payments, your Metro Atlanta mortgage company will draft your monthly payment for you automatically. If you have online bill pay, your bank sends the money every month for you. The problem is, if your payment changes for any reason (typically due to an increase in escrow, taxes and insurance), your online bill pay will NOT know about the change and then your payment will be under or over the correct amount. On the other hand, a recurring draft with your Metro Atlanta mortgage company will account for the payment change and collect the right amount of money.

Get more Metro Atlanta mortgage tips and information at our Atlanta Mortgage Info section of articles to your right under  Atlanta Real Estate Categories.

It is definitely getting easier these days to obtain Metro Atlanta mortgages.

A strong housing market combined with fears that the Federal Reserve would eventually begin tapering its purchases of mortgage bonds helped drive up the cost of a 30-year fixed-rate mortgage from about 3.3 percent in January 2013 to nearly 4.6 percent by September.

Since then, Metro Atlanta mortgages have backed off those recent highs, bobbing back and forth between 4.5 percent or so, and, recently, 4.2 percent. This has helped to keep housing affordable for those who want to buy a home. But it did pose the bankers a dilemma: How could they get more people to want to buy homes in the first place, so they could sell more Metro Atlanta mortgages?

Answer: Make it easier to apply for those Metro Atlanta mortgages.

What Lenders Are Doing to Make Getting Metro Atlanta Mortgages Easier

Demanding less money up front to obtain a mortgage is one obvious way to ease more buyers into the housing (and home mortgage) market. Another tool is loosening up lending restrictions.

According to LendingTree, "Average credit scores for borrowers matched with lenders on the LendingTree network have dropped 6 percent year over year." This, says LendingTree, indicates banks being "more willing to consider a wider pool of borrowers."

Company founder and CEO Doug Lebda put it this way: "As the housing market improves and refinance activity declines, lenders are adapting their guidelines to improve credit accessibility for borrowers. Relaxed lending guidelines translates to a larger pool of qualified homebuyers."

Obviously this is great news for those buying Metro Atlanta homes and getting Metro Atlanta mortgages. With actual mortgage rates now range-bound, it's a bit cheaper to obtain a mortgage today than it was a year ago, and there's also less uncertainty about which way mortgage rates are moving.

Throw in the fact that bankers are less antsy about the risk their loans will ultimately get defaulted on, and it's also a bit easier to get that mortgage loan approved.

Granted, it's developments just like these that sucked America into a financial crisis that nearly destroyed the economy six years ago. But if that's what it takes to get you into a new home — and a new mortgage obligation — apparently, the bankers are willing to risk it.

Stay tuned, we'll keep you updated right here on Metro Atlanta mortgages and the trends that either cause the market to make it easier, or more difficult, to get those mortgages in the future. In the meantime, check out our other articles and news affecting Metro Atlanta mortgages by clicking on the Atlanta Mortgage Info link to your right under Atlanta Real Estate Categories.

When you decide that owning a home is right for you, one of the big decisions you'll face is with your Metro Atlanta mortgage. Should you choose a 30-year fixed rate mortgage, or a 15-year fixed rate? Here are the advantages and disadvantages of these two popular options when it comes to getting a Metro Atlanta mortgage…

We can help you decide whether a 30-year fixed rate or a 15-year fixed rate Metro Atlanta mortgage is best for you, or whether considering one of the many adjustable rate options is better for your circumstances.

We also have other articles and tips pertaining to getting a Metro Atlanta mortgage, and things you need to know before deciding which type of mortgage is best for your circumstances and budget by clicking on the Metro Atlanta Mortgage Info link to your right under Metro Atlanta Real Estate Categories.

A Metro Atlanta cash out refi may soon be a thing of the past, and has in fact, already tumbled from a peak of $320 billion in 2006 to just $32 billion in 2013.

During the housing boom of the mid-2000's, a Metro Atlanta cash out refi became a popular outlet for homeowners. Homeowners were encouraged to think of their homes as ATM's they could easily withdraw cash from, in the form of a cash out refinance.

Decrease in Metro Atlanta cash out refi popularity is due to three reasons:

1. A Metro Atlanta cash out refi is closely tied to an increase in home prices.

Despite jumping 11.5% year-over-year nationally in 2013, inflation adjusted housing prices are still down about 30% from the bubble peak.

In addition, analysts don't expect home prices to continually rise as they did in the bubble years, which could make borrowers less likely to withdraw equity from their homes. Home prices are projected to increase by 4% in 2014 and 2% in 2015 followed by a 2% increase on average in the long term. As a result, many borrowers would still be unable to use a Metro Atlanta cash out refi due to the lack of home equity.

2. A shift in borrower mentality from using their homes as an ATM.

Homebuyers are making more of a concerted effort to pay down or pay off their debts instead of expanding or upgrading. As lending standards tightened after the crash, borrowers' credit quality has improved.

3. A Metro Atlanta cash out refi is not always cheap when compared to alternatives like home equity loans.

While the interest rates on a Metro Atlanta cash out refi are usually lower than those on a home equity loan, they can become expensive once additional loan level pricing adjustments are factored into the equation.

Depending on the FICO/LTV combination, a borrower could pay up to 3% of their mortgage balance upfront or 0.75% additional annual interest rate for a cash out refi. Additionally, cash-outs are not available to high LTV borrowers. Guidelines stipulate that a Metro Atlanta cash out refi is not permitted for borrowers with LTV greater than 85. Finally, closing costs are required for cash-out refinances, but they are not needed for home equity loans.

Given these 3 factors, it would seem unlikely for the Metro Atlanta cash out refi to make a comeback or return to pre-crash levels.

For more mortgage tips and information, check out the link to our Atlanta Mortgage Info under Atlanta Real Estate Categories to your right.

When it comes to Metro Atlanta mortgages, it appears that adjustable rate loans are becoming more popular once again.

Adjustable-rate mortgages, whose rates can jump after a few years, are believed to have been one of the biggest culprits of the housing crisis. However, banks say they are concentrating on making the loans to buyers with strong credit who are looking for larger loans — not to "sub-prime" buyers who took out loans they could barely afford.

A report in the Wall Street Journal says ARM's comprised 31 percent of mortgages in the $417,001-to-$1 million range in the fourth quarter of 2013, up from 22 percent a year earlier. ARMs made up 61 percent of mortgages of more than $1 million.

More Metro Atlanta Mortgages Shifting to ARM's

It would seem that more and more Metro Atlanta mortgages are shifting to the ARM's, especially among first time homebuyers looking to get out of the rental market.

As fixed rate Metro Atlanta mortgages continue to increase, it is expected that more and more borrowers will look at adjustable rate mortgages to keep payments lower.

It is expected that 2014 is going to be the year of the first-time homebuyer, and keeping mortgage payments as low as possible is one driving factor that seems to be creating all the renewed interest in ARM's.

While rates on Metro Atlanta mortgages have continued to slowly rise over the past few weeks, they still remain affordable and many first-time buyers say they still plan to make a home purchase this year.

Get more news about Metro Atlanta mortgages and news that affects mortgage rates by clicking the Atlanta Real Estate News link to your right under Atlanta Real Estate Categories.