Finding the right Mortgage Loan for your new home on the New Jersey Shore
At the annual Mortgage Banker Association convention in Orlando, Florida recently, the following statistics from a survey were released:
- 35-40% of all owners hold their homes free and clear and half the rest have fixed-rate mortgages
- 15 % or so have any interest-rate sensitivity, he explained. And only half of those are new recent enough owners, so "unseasoned" in mortgage industry parlance that "we don't know how they will act."
- 9 out of 10 interest-only loans originated during the first half of 2005 were adjustable rate products; the trend now is toward fixed loans in which the loan amount is amortized over the years after the IO period expires. In other words, with a 10-year IO, total amount borrowed with interest would be paid over the last 20 years.
- ARM originations fell from 46 percent to 36 percent between the last half of 2004 and the first half of 2005
- IOs went up from 17 percent to 23 percent.
-The IO is the affordable loan product du jour, said Doug Duncan, the MBA's chief economist. "It is enjoying overall market acceptance because it offers the lowest payment alternative that gets people into the house they want to buy." Interest-only loan originations tend to be greatest in markets where prices are highest, so they "could be problematic" in places where housing prices are out of whack with reality. But overall, Duncan said this new loan does not pose a peril to the housing sector.
-9 out of 10 interest-only loans originated during the first half of 2005 were adjustable rate products; the trend now is toward fixed loans in which the loan amount is amortized over the years after the IO period expires. In other words, with a 10-year IO, total amount borrowed with interest would be paid over the last 20 years.
Whatever your preference is for you mortgage loan when purchasing you new New Jersey home, an experienced and Jersey Shore Realtor can suggest local mortgage bankers who understands the Jersey Shore real estate market and will explain the advantages and disadvantages of the numerous mortgage loans that are available for today's New Jersey home buyer.
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