New Jersey Fixed Rate Mortgage

Written by on January 11, 2012 in Types of Mortgages - No comments
Fixed Rate Mortgages – The Most Popular Mortgage in New Jersey

In New Jersey, and around the United States, the 30-Year Fixed Rate mortgage is the most common among home owner’s and buyers.  Thirty-year loans provide people with a sense of security and a payment that is reasonable in comparison to shorter terms.

30 Year Fixed Mortgage Rate Trends:

With a 30-year mortgage loan your interest rate will remain the same over the entire thirty year length of your loan.  This means your payment of principal and interest won’t change.  However, it is important to note that if you are paying your home owner’s insurance premiums and property taxes in your mortgage payment, that this portion of your monthly bill can increase.

Over the past few years we have seen a steady decline in 30 year fixed rates.  These rates have fallen from an average of about 5.25% in 2008 down to near historic lows of 3.90% in 2011.  These low rates have provided a great opportunity for first time home buyers and those looking to refinance higher interest rate mortgages.  Now is definitely the time to refinance or take out a new mortgage as rates will most likely begin to rise in the coming years.

Numerous economic factors determine where interest rates will go.  With rates near or at historic lows the likelihood of seeing rates rise in the near term (next 12 months) remains high.  While no one can predict for certain where 30 year interest rates will go, it is our opinion that there is an inherent likelihood of rate increase to come.

Can I get a Shorter Term Fixed Rate Loan?

You have options!  Fixed Rate loan terms are offered at just about any length you may want.  Each lender makes there own rules regarding what terms they offer.  The most common terms other than the 30 year loan is a 15 year or 20 year mortgage.

Typically, the shorter your loan term the lower your rate will be.  This means if you are able to pay a slightly higher monthly payment you can save thousands of dollars by taking a short term loan.  By cutting 5,10, or 15 years off your mortgage term your interest savings will be rather significant compared to a 30 year term loan.  When you speak to your loan officer ask them for payment quotes on shorter terms to see if the payment is still affordable.

If you are looking to purchase a home or refinance an existing mortgage, there has never been a better time than now to lock-in low interest rates.  If you would like to see if you qualify for a lower rate please complete the form on your right and one of our lending partners will contact you.

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