New Jersey Mortgage
A large majority of New Jersey mortgages are of the Jumbo loan variety. Median home prices throughout the state are double that of the national average. FHA and VA backed loans have much higher loan limits due to the housing prices in the state. The most common form of Jumbo loan is the fixed rate conventional loan. However, there are many jumbo loans that fall under the adjustable rate mortgage plan. New Jersey allows other types of mortgages such as interest only and balloon type loans, but they are rarely used due to house prices.
New Jersey Mortgage Rates
New Jersey mortgage rates are nearly double that of the national median price. This is largely due to the high cost of housing in the state. Jumbo mortgages carry greater risk to the lender causing rates to rise. Rates in large areas such as Trenton will see even higher rates. Mortgage rates will also be determined by type of loan, mortgage insurance and credit history. Mortgage rates may be affected by lending institution and program qualifications. People with less than perfect credit can expect to pay very high rates in New Jersey. First time home buyers may qualify for special government backed programs that reduce the interest rates for this type of purchase. Large down payments will assist in lowering the interest rates on the loans.
New Jersey Refinance Rates
Refinancing in New Jersey undergoes the same process as the original mortgage. Rates are comparable to first mortgages. Appraisals will be required for anyone wishing to refinance their home. Credit approval and loan type will determine final interest rate. Many private lenders offer lower refinance rates as a way to gain business in New Jersey.
New Jersey Mortgage Brokers And Lenders
New Jersey has an advantage over many states because they have a large amount of community based banks. These banks offer better than average mortgage rates and keep the mortgages on their books instead of selling them off to a processing company. National banks, credit unions and private lenders all can provide loans in the state. Internet finance companies are allowed to issue loans in the state. Many lenders offer specialized programs for bad credit mortgages and first time buyers. Promotional discounts on interest are allowed as a way to gain business.