First Georgia Banking Company - Home Mortgage

First Georgia Banking Company
1252 Virgil Langford Road,
Bogart, GA
Phone: (706) 548-1432

There are two basic types of home loans available: fixed rate mortgages and adjustable rate mortgages (also called ARMs). Both types offer you distinctly different features and benefits, as well as a variety of financial options.

Two additional types of funding are available to existing homeowners: Home Equity Loans and Home Equity Lines of Credit. These allow homeowners to tap into the equity they've built in their home and acquire funds for major purchases at attractive interest rates.

Home equity loans feature a fixed rate, while home equity lines of credit feature a revolving line of credit and a variable interest rate (similar to a credit card).

The more you know about these types of mortgages, the more active a role you can play in choosing your loan program . . . and the more comfortable you'll feel.

Fixed Rate Mortgages
These feature a fixed interest rate for the life of your loan, so your monthly payments (principal and interest) will always be the same. We offer many terms to suit each homebuyers needs. These are usually your best choice when interest rates are low and you plan to stay in your home for at least five years.

The First Georgia Bank's array of fixed rate mortgages includes home loans for a variety of potential homebuyers.

These include:

Low down payment programs: these are often ideal for first-time buyers and buyers who have not saved a large down payment, but prefer to buy a home and begin building equity immediately.

New construction programs: we offer both lot loans and building and construction loans.

Second mortgages: these are often combined with first mortgages to eliminate the need for private mortgage insurance (PMI).

Equity-based loans: these enable existing homeowners to tap into the current equity in their homes, which is the amount of the original mortgage that has been paid plus any increases in appraised value.

These are just a few of our innovative fixed rate mortgages.

Balloon Mortgages

A balloon mortgage is a fixed rate loan with fixed payments for a specific number of years, and then a larger "balloon" payment due at the end of the loan's term.

Balloon mortgages generally have a lower interest rate than a comparable fixed rate mortgage. The balloon mortgages are frequently used when the buyer plans to sell or refinance the home within seven years, and/or wants to qualify for a larger home because of the balloon program's lower interest rate and monthly payment. Balloon mortgages are a consideration in the following circumstances, if you are:

* Selling your home, relocating, or retiring to a smaller home in the near future.
* Expecting that interest rates will decline in the future
* Anticipating a large, lump-sum amount of cash in the future

Construction Mortgages

If you're planning to build a custom home, ask your First Georgia Bank loan professional about a construction loan specifically designed for you.

Home Equity Loans/Second Mortgage

A home equity loan is a fixed rate loan that allows you to tap into the money you've already invested in your home to finance larger debts at a lower interest rate than most revolving credit options. For example, a home equity loan can help you remodel your home, send a son or daughter to college, or consolidate any outstanding loans.

Another advantage of equity-based lending is that the interest paid may be tax-deductible. (Be sure to consult a tax professional for details.)

To find out what your current equity is worth, simply subtract your outstanding mortgage balance from your home's current value. Depending on the appraisal and loan program, your equity may be worth more than you originally thought.

A home equity loan is a fixed rate loan that you usually receive as a lump sum. Repayments are similar to a fixed rate mortgage - your repayments will be the same every month.

Adjustable Rate Mortgages
Also called ARMs, adjustable rate mortgages have a unique interest rate feature that changes, or adjusts, over the life of the loan. An ARM may be attractive to you if you desire a slightly lower interest rate during the initial stages of owning your home, if you expect that your income will rise in the future, and/or if you are not planning to stay in the same home for long. Also, an ARM may have an initial interest rate lower than a fixed rate loan.

Home Equity Lines of Credit

A home equity line of credit (often called HELOC for short) is a variable rate loan that allows you to tap into the money you've already invested in your home to finance larger purchases at a lower interest rate than other revolving credit options. A home equity line of credit can help you remodel your home, send a son or daughter to college, or consolidate and pay off any outstanding high interest rate loans.

In addition to paying a lower interest rate on your funds, the interest you pay may be tax deductible. (Be sure to consult a tax professional for details of your potential savings.)

To find out what your current equity is worth, simply subtract your outstanding mortgage balance from your home's current value. Depending on the appraisal and loan program, your total equity may be worth more than you originally thought!

A HELOC is a revolving line of credit similar to a credit card, as you're able to withdraw and spend what you like, up to your maximum credit line. Also, as you pay back a withdrawal, the repaid funds will be available for future use.

HELOCS have variable interest rates that may rise and fall during the time your HELOC funds are available. When the original term expires, you must pay off all remaining debt, although you may have the option to apply for a renewal of your credit line.