Committed to educating clients about the lending process, Naveed Bhurgri is a Partner/Sr. Loan Officer with Atlantic Home Mortgage. A nationally ranked Scotsman Guide Top Originator and Mortgage Bankers Association of Georgia Diamond Award winner, Bhurgri serves a broad range of clients. We asked his perspective on current mortgage rates and the impact of Covid-19.
“The mortgage market continues to evolve at a rapid pace due to Covid-19. Two of the biggest changes involve appraisals and closings. Fannie and Freddie have released guidelines to allow for exterior only appraisals and a higher percentage of properties will now qualify for appraisal waivers, allowing the transaction to be closed without the need for a physical appraisal. In addition, the Supreme Court of Georgia has issued an order regarding the Georgia Rules of Professional Conduct and lawyer participation in closings of real estate transactions, allowing lawyers to now participate in and supervise the closing of a real estate transaction by way of a video conference. Two important measures ensuring business continues while protecting the safety of all involved.
Rates are also at historically low levels the first part of 2020. This has encouraged buyers to purchase homes at a rapid rate, as existing home sales were up 9.6% in January 2020 from January 2019 and new home sales reached their highest mark since 2007. Due to lower rates, the monthly payment becomes more affordable, and buying power increases. For example, if one can afford a $2000 principal and interest mortgage payment (excluding escrow), with rates at 4%, this equates into a $419,000 loan amount. With rates at 3%, the loan amount jumps to $474,300. A 1% drop in the mortgage rate, increases buying power by $55,300 in this example. If you’ve been contemplating a move, now may be the right time, as rates continue to remain at some of the lowest levels we’ve ever seen.”
Partner/Sr. Mtg Advisor
Atlantic Home Mortgage
5400 Laurel Springs Pkwy, Ste 1303
Suwanee, GA 30024