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• Mortgage rates in Atlanta are influenced by economic factors and borrower creditworthiness.
• Fixed-rate mortgages provide predictability, while ARMs can offer lower initial rates.
• FHA loans are accessible with a credit score as low as 500.
• VA loans are a good option for military personnel and eligible family members, with no down payment required.
• Investigate local and federal assistance programs for down payment aid and other support.
Introduction to Mortgage Refinance Rates
Welcome to our comprehensive guide to understanding mortgage rates in Atlanta, Georgia. This guide is designed to help you understand how mortgage rates in the Atlanta area are determined and, more importantly, how you can secure the best rate for your individual circumstances. We’ll discuss the factors that affect mortgage rates in Atlanta and provide you with some tips and strategies to help you secure the best rate possible.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
The interest rate you’ll be offered on your home loan is a product of many factors, from the health of the economy to your personal financial situation. But one of the biggest influences on the rate you’ll get is the bond market. The 10-year U.S. Treasury note is a key benchmark for the bond market, and its yield helps set the interest rate for mortgages. Generally, when the yield on the Treasury note goes up, mortgage rates go up, too. And when it falls, mortgage rates tend to fall as well. The state of the housing market in Georgia can also affect the rates lenders are willing to offer, as can the overall state of the economy.
The lender will also weigh your personal financial stats, scrutinizing the following:
• Credit score Most conventional lenders will look for a score of 620 or better, but generally speaking higher is better.
• Down payment Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.
• Debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
Discover how your debt level may impact your mortgage.
Try SoFi’s debt-to-income calculator to calculate your DTI number.
Discover how your debt level may impact your mortgage.
Try SoFi’s debt-to-income calculator to calculate your DTI number.
How Interest Rates Affect Home Affordability
The impact of mortgage rates on home affordability is significant, and in today’s market, with home prices high across the U.S., it’s more important than ever to shop around for the best rate. To illustrate this point, review the chart below for a $400,000 loan. As you can see, securing the lower rate of 6.00% on a 30-year term can save a borrower more than $250 per month and almost $100,000 over the life of the loan. Going with a shorter loan term is another way to save on interest payments, although it does make monthly payments higher.
Interest Rate
Loan Term
Monthly Payment
Total Interest
6.00%
30-year
$2,398
$463,353
6.00%
15-year
$3,375
$207,577
7.00%
30-year
$2,661
$558,036
7.00%
15-year
$3,595
$247,156
Atlanta Mortgage Rate Trends
Historical U.S. Mortgage Rates
When you view the current mortgage rates in Georgia retrospectively, today’s rates actually look somewhat competitive. While rates have risen in recent years, moving away from record lows seen in 2021, they are still below historical highs observed over the last half-century (as shown in the graphic).
The table shows how average mortgage rates in Atlanta tend to compare to those for the U.S. as a whole. (The Federal Housing Finance Agency stopped tracking state averages after 2018.)
Year
Atlanta Rate
U.S. Rate
2000
7.93
8.14
2001
6.90
7.03
2002
6.43
6.62
2003
5.69
5.83
2004
5.62
5.95
2005
5.85
6.00
2006
6.55
6.60
2007
6.36
6.44
2008
6.06
6.09
2009
4.96
5.06
2010
4.74
4.84
2011
4.51
4.66
2012
3.64
3.74
2013
3.80
3.92
2014
4.10
4.24
2015
3.81
3.91
2016
3.69
3.72
2017
4.02
4.03
2018
4.54
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Atlanta, California
Atlanta offers pretty much any type of mortgage loan a homebuyer might need. The key is to understand the difference between them so you can make an educated decision, as the type of loan you choose will affect how much you spend. Here are some terms to know, particularly if you are buying your first home and all this is new territory.
Fixed-Rate Mortgage
Fixed-rate mortgages are for those who appreciate stability. Imagine the peace of mind that comes with knowing your interest rate remains constant over the entire loan term of 10, 15, 20, 30, or even 40 years. Needless to say, this means your monthly principal-plus-interest payment will remain steady as well, simplifying budgeting and future planning. No wonder this is such a popular type of mortgage.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) have their own appeal: They often start off with a lower interest rate than fixed-rate mortgages, which might be a good fit for someone who anticipates their income increasing down the line. Take a 5/1 ARM, for example. You’d enjoy a fixed rate for the first five years, after which the rate can adjust annually — up or down, according to the market. Some people choose an ARM because they anticipate moving and selling before the rate increase hits. If you do opt for this type of loan, run the numbers to see how an increase in rate will affect your monthly costs if it happens.
FHA Loan
These loans, backed by the Federal Housing Administration, often come with more flexible eligibility requirements than conventional loans. With a minimum down payment of just 3.5%, those with a credit score of 580 may qualify for an FHA loan. And homebuyers with a credit score over 500 can still qualify by putting down a 10% deposit. FHA loans often offer competitive interest rates. For first-time homebuyers, they’re a smart way to get into the housing market with less cost upfront.
VA Loan
VA loans, backed by the U.S. Department of Veterans Affairs, are a great option for eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the biggest benefits of a VA loan is that it doesn’t require a down payment, which can make homeownership more accessible. The first step to getting a VA loan if you think you might qualify is applying to the VA for a Certificate of Eligibility.
Jumbo Loan
In most parts of the U.S., and throughout Georgia, the 2025 conventional mortgage loan limit for a single-family home is $806,500. Jumbo loans are designed for borrowers whose needs exceed this figure. These loans often require a higher credit score in addition to a larger down payment from the borrower. Despite these more stringent requirements, jumbo loans can still offer competitive interest rates to borrowers in Atlanta.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Should You Wait for Interest Rates to Fall?
If you’re mulling over a home purchase in Atlanta, you might be pondering this question. Here’s the scoop: The experts don’t foresee a significant drop in mortgage rates in the near future. In fact, Fannie Mae is expecting rates to hover around the 6.30% mark by the end of 2025.
So, what does this mean for you? It probably signals that your decision on when to enter the housing market will need to depend more on your personal financial situation and life goals than on current rates. If you find a place you want to buy and can afford to do so, you can make your move. And if rates do take a dip down the line, you can always explore the option of a mortgage refinance.
Cost of Living in Atlanta
Atlanta made SoFi’s list of best affordable places in the U.S. for a reason. The cost of living here is below the national average and even below that of its popular nearby neighbor, Athens. The median home sale price in Atlanta is $380,000 and has dropped in the last year, according to Redfin. Here’s how Atlanta compares to some other Georgia areas on a scale where 100 is the average cost of living in the U.S.
Georgia City
Cost of Living
Athens
99.0
Atlanta
96.0
Augusta GA – Aiken (SC)
84.0
Dalton
87.0
Douglasville-Douglas County
92.4
Dublin-Laurens County
87.3
Savannah
93.8
Slatesboro-Bulloch County
90.3
Valdosta
92.0
Get Your Best Possible Rate in Atlanta
Before you enter the home and mortgage market in Atlanta, there are a few things you can do to help you land the most favorable mortgage rates in Atlanta. First, tend to your credit score. Check your credit report, seek corrections should you find any inaccuracies, and of course pay your bills on time. Aiming for a lower debt-to-income (DTI) ratio, ideally under 36%, can also work in your favor so do your best to reduce debt. And if you can manage a larger down payment, you’ll not only reduce your interest rate but trim the overall amount you borrow. Getting preapproved for a home loan is a smart move, too, as it allows you to lock in a budget before the house hunt heats up.
The calculators below will be useful throughout your search for a home and a home loan. Playing with different interest rate and loan term scenarios can help you get a sense of how they will affect your monthly budget and overall costs.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Evaluate Loan Offers in Atlanta
Once you have loan offers from multiple lenders in hand, you’ll want to look at them closely to determine which one is the best deal. Don’t only compare interest rates. Take into account the annual percentage rate (APR) on each loan, which encompasses fees, closing costs, and discount points. If you’re concerned about potential rate hikes, some lenders offer the option to lock in your rate for up to 90 days for a fee. Congratulations — you’re in the homestretch. By diligently shopping around for the best mortgage rates in Atlanta, you’re taking a giant step toward financial well-being.
Georgia has your back, offering down payment assistance programs and other resources to help homebuyers, especially those who qualify as a first-time homebuyer or who have limited financial means. The Georgia Dream program is a prime example, providing loans at competitive interest rates to first-time buyers who meet maximum home price and maximum income qualifications. The Peach Plus program targets homebuyers not served by the Georgia Dream program. Local programs in cities like Atlanta sweeten the deal with additional down payment assistance, making the path to homeownership more accessible than ever.
Closing Costs in Atlanta
Those of you ready to make your home in Atlanta will need to set aside 2% to 5% of your loan value for closing costs. The final tally will depend on a few things, like the value of the property and where it’s located. These costs can cover a range of things, from loan origination fees to title insurance. It’s a good idea to keep these in mind as you plan your budget for your new home.
The Takeaway
Atlanta’s mortgage landscape is as diverse as the city itself, offering myriad options for homebuyers. By keeping your finger on the pulse of current mortgage rates in Atlanta and exploring assistance programs, you can achieve successful homeownership in Atlanta. Whether you’re a first-time buyer or a seasoned homeowner, understanding the various mortgage types and resources available can help you navigate the market and secure the best possible terms.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Predicting mortgage rates in Atlanta is like trying to predict the weather. Keeping an eye on economic trends and market conditions is the best way to know what will happen to mortgage rates in the area. If the 10-year Treasury Bond rate is falling, mortgage interest rates may fall as well. However, the forecast for interest rates through 2025 is one of relative stability, with the national average rate ending the year at 6.30%.
Will Atlanta home prices ever drop?
A steady influx of people moving to Atlanta means that home prices may not give much ground. They have dropped in the last year, however, and the market is only somewhat competitive at the moment. The extent to which new developments on the horizon could help mitigate the population gains remains to be seen.
How do I secure a mortgage rate?
To secure a great mortgage rate in Atlanta, you want to ask your chosen lender for a “rate lock” agreement. You can usually request one fairly easily, although it may involve paying a fee. But if forecasts are for rising rates, the decision may be well worth it.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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