Bergen Mortgage Rates

Mortgages in Bergen County

There are many different types of mortgages out there in the market today. The most common, and probably the safest, is the 30-year fixed rate mortgage. This product often keeps payments low and has competitive interest rates. Consumers that wish to have their house paid off sooner and have the money to spare, typically gravitate toward a 15- or 20-year version of this product. All-in-all a fixed rate mortgage provides the security of a fixed payment and the knowledge that there are no hidden loopholes. In recent years, adjustable rate mortgages or ARMs have exploded into the market. ARMs typically have a 1, 3, or 5 year lock-in period for your original rate, and then they adjust yearly from there. These have become popular for people not planning on staying in a home long-term. Normally the initial rate is much lower than in other products. Homeowners planning stay longer than the lock-in period should beware because the rate naturally skyrockets. Although ARMs usually have rate ceilings that they cannot exceed, the effect on your monthly payment can be catastrophic.

In addition to fixed and adjustable mortgages, there are interest only and balloon mortgages. These would only be beneficial in the event that you planned on selling the house almost immediately. Interest only mortgages only pay the interest that is accrued on the loan amount each month, leaving the principle untouched. This results in larger payments as the loan ages. A balloon mortgage is similar in that, at first, payments are very low. The difference is that a balloon mortgage has a large final payment, typically in the tens of thousands of dollars. With all the options out there, it is important to know exactly what type of mortgage is right for you.

Bergen County Home Equity Loans

A home equity loan can be a good option if you are considering paying off debt or remodeling your home. A home is an asset that can work for you if you know how to use it. First of all, in a declining real estate market, it is important not to borrow 100% of the value of your home. This leaves you a little room in case an emergency should pop up. Paying off debt with a home equity loan is a good solution as long as it lowers your monthly debt payments and the interest of the home equity loan is lower than that of your other debt. A home equity loan is an even better idea if you are using it for home improvements. Remodeling raises the value of your home which offsets the equity you took out to pay for it. There are a lot of good home equity loan rates out there right now, and some even have little to no closing costs.

FHA Mortgage Loans in Bergen County

FHA loan maximums in Bergen County, Hackensack are almost triple that of the country’s average. Given the prime location only 12 miles from New York City, property values are high. With $730,000 allowed by the FHA, a consumer can buy a small house in an upscale area or a large house in a less desirable location. An FHA loan in Bergen County can go pretty far, so if you qualify it is an excellent option that you should take advantage of.