NJ Mortgage Truth

11/09/2019

Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward.

Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward. As an example, CoreLogic increased their 12-month proj...

12/07/2018

Once you’ve decided how to pay back the capital and interest, you need to think about the mortgage type. Mortgages come with fixed or variable interest rates.

With a fixed-rate mortgage your repayments will be the same for a certain period of time – typically two to five years.

Regardless of what interest rates are doing in the wider market. If you have a variable rate mortgage, the rate you pay could move up or down, in line with the Bank rate.

12/07/2018

Lenders will want to see proof of your income and certain expenditure, and if you have any debts. They might ask for information about household bills, child maintenance, and personal expenses.

Also they can refuse to offer you a mortgage if they don’t think you’ll be able to afford it. Because each situation is unique, you should talk with several lenders to determine the best loan options for you, taking into account your financial readiness, how long you plan to own the home, and other factors.

12/06/2018

It’s not a purely financial decision; it’s also an emotional one. So it makes sense to be nervous to make such a large purchase, plus take on financial responsibility and the cost of upkeep.

However, if you are ready both financially and emotionally, you should take the step to buy a home. A home can not only provide security and a sense of accomplishment, but it can also set you up for financial success.

12/06/2018

While buying a home is often referred to as the American Dream, if you buy before you are ready, there can be major financial consequences.

It is important to buy a home for the right reasons.

You should be sure you are ready and aren’t just buying because it’s what you are expected to do, or it’s the next step

12/05/2018

Myth: You can’t use gifts or grants for your down payment.
Fact: Many mortgages today allow the down payment to come from any source as long as those sources are documented.

And not only can your down payment include gifts from parents or friends, there are also grants from non-profits or other sources out there that could help, such as company-sponsored home-buying programs.

12/05/2018

The money you borrow is called the capital and the lender then charges you interest on it till it is repaid. The type of mortgage you are able to apply for will depend on whether you want to repay interest only or interest and capital

12/04/2018

An Amortization Schedule is a mortgage payment timetable showing the amount of each payment that's applied to both principal and interest, and the remaining balance after each payment.

12/04/2018

Don’t stretch yourself if you think you’ll struggle to keep up repayments. Also, think about the running costs of owning a home such as household bills, council tax, insurance and maintenance.

It’s very important to know not only how much you earn but how much you spend per month. Even with low mortgage rates, a mortgage payment and the additional monthly expenses that go along with owning a home could break your budget.

12/03/2018

Myth: “Find a home first, then worry about financing”.
Fact: This is a very painful lesson for many first-time buyers who fall in love with a home only to learn they can’t qualify.

That’s why it’s important to consult with a lender before you embark on your home-buying journey.