New Jersey Mortgages | NJ Mortgage Types

 New Jersey has the highest population density of any U.S. state. The Garden State has an abundance of residents, and also an abundance of housing opportunities. Some people prefer to live in a thriving small city close to NYC, such as Hoboken or Jersey City, while others prefer the quieter, slower-paced towns of Asbury Park or Princeton. Whatever your desire, we can help guide your New Jersey home search, and help answer any mortgage questions you may have.

 

Basic New Jersey Mortgage Facts

There are many types of mortgages available in New Jersey. We’ve listed the advantages and disadvantages of popular mortgage types below.

  • Fixed Rate Mortgage: This mortgage has a fixed interest rate for the entire loan term, meaning that your monthly payment is predictable and consistent. If you get a FRM with a high interest rate, though, you’re stuck with it for the long run.
  • Adjustable Rate Mortgage: This mortgage has an adjustable interest rate that starts out low but could possibly rise if market rates increase.
  • Jumbo Loan: This mortgage has a loan amount that exceeds the conforming loan limit set by Fannie Mae ($417,000). A jumbo loan has a higher interest rate than a traditional mortgage, but it offers greater financial flexibility and allows an eligible borrower to purchase a more expensive home.
  • Commercial Mortgage: This mortgage is reserved for business people who want to purchase a commercial property (e.g. office, retail store). New Jersey commercial mortgages have a lengthy application process and, often, a higher interest rate.

 

Refinancing or Loan Modification?

Let’s suppose you already have a New Jersey home mortgage, but need a lower monthly payment. What can you do? There are several options available to you, including refinancing or loan modification. Both of these programs will reduce your monthly mortgage payment with either a lowered mortgage rate, extended term, or zero interest payments.

 

The main difference between refinancing and loan modification is that refinancing involves issuing a brand new home loan, while loan modification simply adjusts your existing loan. Though refinancing is more expensive and more difficult to obtain, it is a permanent solution to lowering your monthly payment and will likely save you more money in the long run. Loan modification, on the other hand, is a temporary solution: after five years at the adjusted lowered interest rate, the rate may slowly increase to a set level. For this reason, most NJ mortgage lenders would recommend refinancing to homeowners who can qualify for it.

 

Beware of Mortgage Scams

Given the current economy and high unemployment rate, some NJ homeowners cannot meet their monthly mortgage payments and are in danger of losing their homes to foreclosure. In this situation, sometimes desperation takes hold and we turn to whomever we think can help us. Unfortunately, there are people out there who take advantage of such homeowners and promise to rescue their home and/or financial situation for an up-front payment.

 

During your NJ mortgage search, be weary of foreclosure rescue scams, reverse mortgage scams, and mortgage fraud. Always research and check the company with the Better Business Bureau or another government agency, and never divulge private or financial information until you’ve confirmed that they have a great reputation.

 

We’ll Help You Find the Right NJ Mortgage Lender

With all of this mortgage information swirling in your head, there’s no shame in asking for help! If you tell us a little about yourself and your home-owning goals, we’ll match you with a top-quality, reputable New Jersey mortgage lender that you can trust. Whether you’re looking for a beach house at the Jersey Shore, a condo in Newark, a farmhouse in Oldwick, or a bachelor pad in Atlantic City, we can help you find an affordable mortgage with a NJ lender you can believe in. For your free no obligation mortgage rate quote, contact us today!