If you have never refinanced a New Jersey mortgage after bankruptcy, then you probably don’t know a lot about the process. Taking time to educate yourself in regards to the way the lending industry works will be to your advantage. To help you out, here are three things in particular you may not know about refinancing a New Jersey mortgage after bankruptcy:
Lenders Will Be After You
After filing bankruptcy, you might be surprised when a whole slew of lenders come crawling out of the woodwork ready to offer you any loan that you’re looking for. Perhaps you have already received phone calls, emails, or items via snail mail advertising various lending services. While it may be tempting to contact one of these companies, you will be better off soliciting your own lender rather than going with a lender who solicited you. You will especially want to steer clear of anyone asking for credit card information or bank account numbers during an initial consultation.
New Jersey Has Laws to Protect You
To protect borrowers who are interested in mortgage refinancing after bankruptcy, the state recently created the New Jersey Home Ownership Security Act. This act prohibits predatory lending practices and is specifically focused on protecting a borrower’s equity. Even with this law in place, borrowers should heed any warning flags that might come up when working with a lender to refinance a New Jersey mortgage after bankruptcy.
You Need to Be a Smart Shopper
Rates, fees, and lending terms are different everywhere you go. This is why it is imperative that you be a smart shopper when searching for a New Jersey mortgage refinance after bankruptcy. Without making comparisons prior to taking out a loan, you will have no idea whether or not you are getting the best loan available.
New Jersey is one of the most populated and desirable states in the country, as it provides a great place to live for families, professionals and those seeking a great vacation spot along the shore. Now, when you learn how to search for homes through New Jersey foreclosure listings, you can find incredible savings that are not available through any other type of real estate. From the suburbs of New York City and Philadelphia to the scenic coastline of the Atlantic Ocean, New Jersey is a state like no other. This owes mostly to its unique location. Few other states are home to major suburban and metropolitan areas that originate from cities that are not within the actual borders of the state, but for many, that is the big attraction. New Jersey residents often depend on the thriving economies of Philadelphia and New York and are able to take full advantage of all the resources they provide.
These include culture and museums, opportunities for jobs and employment and much more. However, citizens are able to live in close proximity to these areas while still living in a more laid back environment than the big city offers. That is not to say the New Jersey doesn’t have a lot to offer on its own. There are beautiful state parks in the south and north, very diverse cultures and neighborhoods, and everything from dense suburbia to the most remote and rural locations. The Jersey shore is one of the most popular vacation destinations on the east coast, and for many is another huge draw. Not many other places in the world are so close to such beautiful natural settings and world class cities at the same time! And now homebuyers and investors can buy great real estate all over this incredible state for way below market prices, just by purchasing through New Jersey foreclosure listings!
Anyone trying to find a deal on a new home, vacation house or investment property should be sure to consider New Jersey real estate foreclosures. These remarkable properties are available all over the state and come in all shapes and sizes. You’ll be able to find everything from apartments, condos, houses and even commercial properties through New Jersey foreclosure listings, and all for prices you’d never find on the open market. These properties become available after a homeowner defaults on their mortgage loan. In order to retrieve the amount lost on the loan, the lender will seek to repossess and sell the property in question, using the proceeds to cover the debt. However, since the lender only needs to collect a portion of the full loan value in order to cover the remaining debt owed, they often allow for properties at auction to be undersold. By attending these public sales, homebuyers and investors can often find incredible discounts ranging anywhere from 10 to 50% off the market value of a property. And best of all, anyone can learn to buy these New Jersey real estate foreclosures–you don’t have to be an expert!
Foreclosure investing is an incredible opportunity, because it afford you the opportunity to both save a lot of money initially, and to increase your chance for future profits down the line. Buying below market value means being able to turn around and sell your property right away for a profit! But first, you have to know how to find these great opportunities, and the best place is often a foreclosure list. You can easily access lots of listings online, so that you can see what kinds of property are available in different areas throughout New Jersey. Search for the exact types of homes you want and you’ll be able to get lots of information on them that will help you decide whether or not to pursue them! Get started today, and buy great homes through New Jersey foreclosure listings!
Foreclosure listings in New Jersey are quickly becoming unmanageable. Due to the rapid increase of foreclosure listings in the State of New Jersey, new legislation is being introduced to check out the loan officer before any more mortgages are being offered. This is due to the predatory practices of certain lenders who will approve loans for people who truly should not qualify. Predatory lending is a definite cause resulting in New Jersey having an overwhelming foreclosure rate.
New Jersey is also suffering from foreclosure woes due to ARM’s (adjustable rate mortgages) now hitting their peak. Many homebuyers took advantage of low introductory interest rates offered with ARM’s as a way to qualify for the mortgage. The rule of thought was to qualify since the interest rate and corresponding payments were low. This would buy the homewoner time to get more financial backing. However, the state of the economy in New Jersey, as well as across the country did not play into the hands of these same homeowners. Now the introductory rate has expired and higher payments are becoming due. These same homeowners are finding themselves not is a financial situation to be able to afford these higher payments.
Don’t misunderstand, many people still can qualify for a mortgage and are in the housing market. This is where a fully detailed foreclosure listing can produce some incredible deals, and in New Jersey these deals are readily available. So, if you are one of the many people in the New Jersey housing market, look to foreclosure listings as a means to find your next real estate investment.
Foreclosure listings are simply an index of properties which the homeowners have defaulted on the loan and the lender has now regained possession of the property. These homes are being sold for the amount of money still owing on the property. Many times the home is being sold for 10% to as much as 50% lower than their market value. The lender allows the home to be sold under market value for several reasons:
1. Lenders are not real estate agents, they truly do not like homes in their possession. If the home is in their possession, they are not earning any money from it.
2. The Lender wants to dispose of the property as quickly as possible, so they are willing to sell it for what remains “owing” on the property.
3. Lenders do not want to care for maintenance and other homeowner issues for the foreclosure properties.
Properties found on foreclosure listings can save you quite a bit of cash and reward you with instant equity. Find your New Jersey foreclosure listing, and save time and potentially thousands of dollars today!
Nowadays, it seems like credit scores are becoming more and more important. Everyone from creditors to insurance companies is taking a good hard look at your credit history before doing business with you.
The average credit score in New Jersey is 693, slightly higher than the national average. If you want to get your credit score up to this mark or past it, you may want to consider refinancing your New Jersey mortgage loan.
How Refinancing Can Help Your Credit
Lenders like to see that you can keep up with payment obligations for a long period of time. They also like to see that you have built up assets. Refinancing your current New Jersey home loan into a loan with a better rate can help you achieve both of these tasks at the same time.
A lower rate practically guarantees more affordable payments. When your payments are easier to make, you are more likely to make them on time. You will also be more likely to put extra on the principle, which will help you build equity and assets. Right now, refinance loan rates in New Jersey average 5.77 percent. If you have bad credit, you can expect to pay a rate that is a bit higher.
How Refinancing Can Help Your Budget
By getting better rates and terms on your New Jersey refinance loan you can also free up money to pay other bills, like credit cards and other loan installments. Paying off these items at a faster rate will help you to build a solid credit rating. Anytime you can get your credit card balances below 30 percent of your card limits, you give your credit rating a huge boost.
Mortgage refinance is the process of taking out a new loan or second mortgage to replace an existing loan. To refinance a mortgage, one has to actually replace it with a new mortgage loan. Various matters have to be considered when seeking a refinancing loan in New Jersey.
The biggest reason to refinance loan is to acquire a lower interest rate on the mortgage principal balance. The advantages of refinancing are monthly interest payments cam be reduced, rates can be lowed in, repayment of debt can be accelerated, first and second mortgages can be consolidated into one low payment, and tax liens are removed.
With so many lenders in the New Jersey market armed with different deals it is difficult to make a choice. The borrower must be prepared with information about motives for securing a refinance loan, like how much is needed, etc. The borrower should look at all mortgage deals that are out there including total processing fees, interest rates and penalty costs. With this information in hand, a borrower can ask the lender for amortization schedules – a monthly repayment schedule. Then, total the interest of the entire loan term and calculate the total costs of refinancing. Finally total costs of different companies can be compared, and a borrower can settle on the best deal usually one with the lowest cost.
A person who goes in for refinance needs to do a careful appraisal of all terms and arrangements given by the lender, read the entire fine print, do adequate research, choose the best deal and settle for realistic aspirations.
If you are in the market for a New Jersey home mortgage loan, you will need to make sure that you find just the right lender. The lender you choose will not only set your rates, lending fees, and closing costs, they will also be handling your personal and financial information. Here are a few tips to help you find a good lender in New Jersey:
The first step of the loan process is deciding to get a loan. The second step involves getting referrals. You can ask friends, family, and acquaintances for lender recommendations. You can also expand your search to the Internet. There are many informational sites online that can provide quality lender referrals.
If you want to find a good lender to handle your New Jersey home mortgage loan, you are going to need to ask a lot of questions. If there is anything you do not understand when it comes to a quote, estimate, or loan agreement, it is essential that you ask about it. If your lender can’t or won’t answer your questions, consider it a red flag.
Watch for Predatory Practices
Though it would be nice to think that every lender has your best interests at heart, the truth is that they don’t. Predatory lending is a serious problem in our society and many hard-working people get fleeced each year. New Jersey home mortgage shoppers are luckier than most because the state has enacted very strict anti-predatory lending practices. Even so, those who are shopping for a New Jersey home mortgage loan need to watch out for common predatory practices. If your lender is quoting unfair rates and fees, you should be wary. If they are changing numbers on your mortgage application or encouraging you to lie about your finances, you should find a new lender immediately.
Many lenders limit the amount of money that you can draw from your home to 80 percent of the home’s value, or at most 100 percent of the home’s value. Some lenders, however, offer 125 percent home equity loans.
What are 125 Percent Home Equity Loans?
To understand how a 125 percent home equity loan works, you must first understand the LTV ratio. LTV stands for loan to value and represents the number that comes from dividing your loan amount by the appraised value. For example, if you have an $80,000 mortgage on a $100,000 home, your LTV is 80 percent.
If you were to get a 125 percent home equity loan on this home, you would be allowed to borrow $45,000 on top of the $80,000 you already owe. Basically, your lender would be giving you more than your home is worth. The problem with this is that if you ever need to sell or move for any reason, there will be not be a way to recoup enough to pay off your debts.
Who Should Get 125 Percent Home Equity Loans
A 125 percent New Jersey home equity loan isn’t right for everyone. Homeowners can get themselves into dangerous territory when borrowing that much money. Rates on New Jersey home equity loans average 7.64 percent. If you get a 125 percent New Jersey home equity loan, you can expect to pay interest rates that are anywhere between 12 and 18 percent. This means high payments, which aren’t easily affordable. Before getting a 125 percent home equity loan, you should be very confident in your ability to pay back the money you borrow. You also better be sure that you really need the cash.
Mortgage refers a way to secure a loan using real estate property as security. It is the most popular way of purchasing real estate. Mortgage payments are of two kinds- Fixed Rates Mortgage (FRM) and ARM (Adjustment Rate Mortgage).
In FRM, monthly interest repayments are fixed for the lifetime of the loan. In ARM, interest is fixed for a particular period of time after which it will be adjusted to some market index like Prime Rate or LIBOR.
New Jersey mortgages rates change with interest rates; also several rates like Prime rate and Treasury rate affect mortgage rates. Mortgage rates are one among many factors that affect your loan. To obtain a competitive mortgage in New Jersey several factors affect the rate and points you receive.
The factors affecting rates and points are:
1) Credit Score-It is a statistical method to calculate your credit worthiness. (Debt outstanding, credit card usage, bankruptcies etc.)
2) Income- this gives an idea of how much the debtor earns through his tax returns.
3) Current Equity- Value of your current assets.
4) Current Debt- Value of the amount you owe to others
5) Loan amount- the amount you want to borrow.
There are certain limits specified by the FHA (Federal Housing Administration) on amount of Home Mortgage in New Jersey. It ranges from the least amount of $172,632 in County of Cumberland and amounts to a maximum of $312,895 in most counties like Bergen, Essex, Hudson, Middlesex, and Morris, Sussex etc.
The typical mortgage rates charged by agencies in New Jersey can be seen by the New Jersey Mortgage Rates of the COFED bank, which is a direct lender of mortgage loans in New Jersey.
To secure the best deal it is wise to consult a local New Jersey Financial Broker who is familiar with the nitty-gritty’s of mortgage financing in New Jersey.
Getting a New Jersey home mortgage loan can be an exciting process. New Jersey is a wonderful place to live and homes are typically a good investment. However, you shouldn’t get so caught up in the excitement that you miss important information about the loan process. To help you out, here are three things you should know about mortgage loans:
Your Options Are Endless
The days of having only one mortgage loan program to choose from are long gone. Borrowers today have a whole slew of creative financing options available to them. There are balloon loans, interest only loans, 40-year loans, 80/20 loans, and dozens upon dozens of other loan programs to choose from. Before you jump on the first approval that comes your way, you should take time to investigate all of your options.
You Will Probably Have to Pay Points
Paying points on a New Jersey home mortgage loan is very common. Points are a way for lenders to make money on the loan. Borrowers may also pay points in exchange for a lower interest rate. One point is equal to one percent of your mortgage loan. The good news about points is that they are usually tax deductible.
Your Credit Affects Everything
Most people know that a low credit score will have an effect on the interest rates that they pay on a loan, but what they don’t realize is that their credit score will also affect closing costs and PMI (Private Mortgage Insurance) premiums. Anyone with a credit score below 620 is usually considered a subprime borrower and can expect to pay higher costs on every aspect of their New Jersey home mortgage loan.
Mortgages are a trillion dollar business in the US. Mortgages started in 1934, when the Federal Housing Administration (FHA) lowered down payment requirement on loans and allowed 80 loans-to-value loans. The FHA also increased loan terms to 15 years compared to 3, 5, 7 year loans that ended in balloon payments. This led to a flurry of activity and spurt in mortgages.
Compared to 1940, when only 40 percent of households owned homes, the mortgage business boom has resulted in 70 percent ownership in 2000. In 2003, total U.S. residential mortgage production reached a record level of $3.8 trillion through record low interest rates.
New Jersey Mortgage companies offer finance for new home purchases, debt consolidation loans, refinancing loans, home equity loans and commercial property mortgages.
In each case, the debtor needs to prove creditworthiness. There are two basic types of amortized loans. ARM or Adjustable Rate Mortgage has a fixed interest fate for a certain period that is eventually adjusted according to market rates. FRM or Fixed Rate Mortgage has a fixed interest in monthly payments until the end of loan period. A third kind called a Balloon loan calculates interest for a certain period but the outstanding principal is made payable at some date within this period.
To start the mortgage process, a borrower submits a credit report to an under writer. A mortgage broker may select the best company suited to the borrower’s needs. Next a lender is chosen. The lender charges various fees including entry, exit, administration and lender mortgage insurance fees.
Mortgage lending is big business in the US. In New Jersey there are numerous companies offering mortgage services including
Go Apply.com, Lending Tree, 4Low rates, Abacus Mortgage, All Options, America’s Lending partners, Ameriquest Mortgage, Champion Mortgage, Circle lending, Countrywide loans, E-loan, Fast Find, Featured Bank, Greenpoint Mortgage, GuidetoLenders, Home123, Household Finance Corporation, ING Direct, Loan Web, Loan Atlas, Loanapp, Low cost Lending, Low rate Source, Money Nest, Money Search, Mortgage Health Planning.com, National mortgage Network, Princeton Mortgage, Reliable resources inc., Respond.com, Savings path, Service Magic lending, The Loan page, Windsor Financial Mortgage corporation, Shearson Mortgage,1st Metropolitan Mortgage and American Real Mortgage Corporation.
Mortgage companies have different rules and operating rates. The borrowers will do well to consult an experienced financial advisor to find the best deal.