| Mortgage refers a way to secure a loan using real | | | | 2) Income- this gives an idea of how much the debtor |
| estate property as security. It is the most popular way | | | | earns through his tax returns. |
| of purchasing real estate. Mortgage payments are of | | | | 3) Current Equity- Value of your current assets. |
| two kinds- Fixed Rates Mortgage (FRM) and ARM | | | | 4) Current Debt- Value of the amount you owe to |
| (Adjustment Rate Mortgage). | | | | others |
| In FRM, monthly interest repayments are fixed for the | | | | 5) Loan amount- the amount you want to borrow. |
| lifetime of the loan. In ARM, interest is fixed for a | | | | There are certain limits specified by the FHA (Federal |
| particular period of time after which it will be adjusted | | | | Housing Administration) on amount of Home Mortgage |
| to some market index like Prime Rate or LIBOR. | | | | in New Jersey. It ranges from the least amount of |
| New Jersey mortgages rates change with interest | | | | $172,632 in County of Cumberland and amounts to a |
| rates; also several rates like Prime rate and Treasury | | | | maximum of $312,895 in most counties like Bergen, |
| rate affect mortgage rates. Mortgage rates are one | | | | Essex, Hudson, Middlesex, and Morris, Sussex etc. |
| among many factors that affect your loan. To obtain a | | | | The typical mortgage rates charged by agencies in |
| competitive mortgage in New Jersey several factors | | | | New Jersey can be seen by the New Jersey |
| affect the rate and points you receive. | | | | Mortgage Rates of the COFED bank, which is a direct |
| The factors affecting rates and points are: | | | | lender of mortgage loans in New Jersey. |
| 1) Credit Score-It is a statistical method to calculate | | | | To secure the best deal it is wise to consult a local |
| your credit worthiness. (Debt outstanding, credit card | | | | New Jersey Financial Broker who is familiar with the |
| usage, bankruptcies etc.) | | | | nitty-gritty's of mortgage financing in New Jersey. |