How Much Will Your Mortgage Be in Georgia?
The Georgia housing market is roughly as affordable as the national average with Georgians spending 19% of their incomes on homes. While the Peach State’s prices continue to rise annually, they fall just behind U.S. averages of 20%. Georgia’s housing market is primarily made up of the Atlanta metro area, with smaller cities such as Savannah, Athens and Augusta being less expensive.
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Factors That Can Affect Your Georgia Mortgage Calculations
Home Prices in Georgia
Georgia is the 18th most populous state in the U.S. with close to 11 million people. According to data collected in March 2020, the average home in Georgia costs $212,500 with a median list price of $260,700.
In the densely-populated city of Atlanta, the median cost for a home is $275,300 with a list price average of $319,000, far above the state average. Atlanta has seen a growth of 3.4% in home values over the past year. The coastal town of Savannah has also seen an increase of 4.8% over the past year and is a little more affordable with average list prices of $241,990 and closing sales of $209,500.
To the east of Atlanta is the city of Athens. Median list prices for homes here are $219,000 with homes valued at a median of $207,500.
Further inland, on the border with South Carolina is the city of Augusta. Median list prices here are $139,900 with an average home value of $110,364.
Property Taxes in Georgia
Property taxes in Georgia are considerably low and vary significantly throughout the state. The median tax payment per year is $1,448, $650 less than the national average. The average effective tax rate for the state is 0.91% of the assessed fair market value. In most counties, school district taxes form a large part of the final amount.
Georgia also has several tax exemptions that can reduce a home’s assessed value, which will reduce tax payments. These vary by county.
Georgia Job Stats to Consider
Georgia's unemployment rate as of January 2020 was 3.1%, less than the national average of 3.7%. The average personal income is $56,183, slightly higher than the national average of $54,420.
Depending on which tax bracket your personal income falls into, income tax is a sliding scale between 1% and 5.75%. Georgia’s sales taxes are also some of the lowest in the country and vary between counties. Sales taxes range from 4% to 9%. Atlanta has its own city sales tax of 1.15%.
Job Stats (Civilian Labor Force, Employment, Unemployment)
Other Georgia Costs That Can Affect Georgia Mortgage Calculations
Homeowners Insurance in Georgia
Homeowners Insurance is not required by law in the state of Georgia. However, it may be required by your lender if you have a mortgage. Georgia's insurance costs are slightly less than the national average, costing approximately $1,114 for $200,000 of dwelling coverage with $300,000 of liability insurance and a $1,000 deductible.
The Peach State can be prone to turbulent weather with coastal towns such as Savannah experiencing hurricanes and flooding, and more inland towns attracting windstorms and the occasional wildfire. The average insurance policy does not cover floods so homeowners in coastal towns should consider an additional policy.
In Georgia, you should expect to pay an additional 0.5 to 5% of the total loan amount in closing costs.
A one-time title insurance purchase to cover the loan amount may be required by your mortgage lender. This protects your lender's interest in the event of any future disputes with your title.
Real Estate Transfer Tax
The real estate transfer tax is often paid for by the seller, but it also benefits the homebuyer in the event that they one day sell their home. Residents of Georgia can expect to pay $1 for the first $1,000 on the purchase price of their home and then at a rate of 10 cents for every $100 thereafter.
Home inspections in Georgia average between $200-$400 depending on the square footage of the home. The average home inspection costs around $315 and includes an appraisal of structure, pipes, electrical, roof and basement carried out by a licensed inspector. For specific tests such as mold or radon you will need to pay extra.