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So here it is April eight and New Jersey Mortgage rates have spike a little. Despite the good news on small recovers in housing and the job markets and the Fed not purchasing mortgages nj mortgage rates are not as bad as some analyst have been predicting.

So for our new jersey first time home buyers and move up buyer’s time is running out.The $ 8,000 for first time buyers and $ 6,500 for move up buyers will expire on April 30. This means you must be under contract by the 30 th and close before July 1, 2010.

The tax credit ending soon and very low nj mortgage rates should make the home buying decision an easy one. The amount of inventory available today can make a potential buyer a little over selective. Being too selective though can potentially cost you thousands. A slight rise in nj mortgage rates paid over 30 years and losing the $ 8000 gift from uncle Sam. So if you are serious about home ownership you must be willing to make some concessions and get off the fence in April.

Sales of new homes fell unexpectedly to the lowest level on record in February. Stormy winter weather and high unemployed have been keep buyers on the sideline. This was the fourth month of decline and the worst on records since 1963. This is very disappointing factoring in we have historic low nj mortgage rates.

Resale sales also fell to the lowest level in eight months raising doubts about the housing market recovering. Resale home now have dropped for the third consecutive month. The extension of the tax credit and expansion to repeat buyers, have not yet stimulated the troubled housing market.

It is expected that another three million foreclosures will be entering the inventory in 2010. This will bring more pressure to the nine month inventory.

The north east saw a twenty percent decrease in new home sales. The main factor was the extremely large snow falls and very poor weather conditions.

On a good note nj mortgage rates are still holding steady. A + borrowers with good loan to values can still borrower thirty year mortgages in the 4.875 to 5.125 % range.

Spring 2010 is here nj mortgage rates are very low….. Should I Rent or Buy

A place to live is one of the most common considerations one must make if homeownership is affordable.  Over the long term a person is generally better off buying than renting. Some exceptions to this would be, moving within a few years, a very low rent, does not want the obligations that come with home ownership and has better use for his or her money in terms of a financial investment or lifestyle.

If you can afford to buy and maintain a home there are many advantages. The advantages are the ability to benefit financially with the tax advantages of the interest and property tax deductions, the possibility of appreciation in future value and peace of mind that you can change the decor and stay until you decide to sell. Spring nj mortgage rates are still at historic lows making home ownership very affordable.

Once you have made you decision to buy a home you must decide how much you can afford to pay for your new home mortgage. To do this you should analyze you other monthly expenses. Take some time with this, and even review you past years spending habits. Now its time to talk with your New Jersey mortgage broker to see what lenders will allow you to borrow.

Once pre qualified you will know exactly what home price rang you should be shopping in. With very low nj mortgage rates and good supply of  homes for sale you should find  a good home at an affordable price.

Certain loan fees are established as a percentage of the loan amount or principal balance.this percentage is referred to as points. Therefore, one point is the same as one percent of the loan amount. A loan origination fee, a mortgage broker’s fee, discount points.are all percentages of the loan amount, or loan balance, and may be referred to  as points.

The loan origination fee is a fee charged as a percentage of the loan to cover the lender’s cost and profit for preparing documents and providing other services in processing the loan in-house. An example would be a $ 200,000 loan x 1 point = $2,000.

Loan to value is the amount of money you borrower in relation to the value of the property you are purchasing or refinancing. This value is always determined by an independent appraiser. Loan to value is never determined by the sales price or contract price, its always by the appraised value. An example is a home appraisal has a value of $ 200,000 you are borrowing $ 160,000 in this case the loan to value is 80 %

Rates this is the percentage of interest you will be required to pay along with principal in order to pay down or amortized your loan. nj mortgage rates vary from day to and in some cases can change on a hourly basis.

A lock-in, also called a rate lock is a lender’s promise to hold a certain interest rate and a certain number of points for a consumer for a specified period of time while his loan application is processed. A lock-in could ensure the consumer is able to afford the mortgage

Prepaid interest (per-diem interest) represents the interest that the buyer will be charged at closing for the use of the loan proceeds from the date of the closing of the loan to the first day of the following month. Because it is common practice in the mortgage lending business to have a loan begin on the first day of the month, at closing the borrower will pay interest for the period between the closing date and the first day of the following month based on the loan’s interest rate.

Tax and Insurance Escrows these are simply an account similar to a bank account. This account is usually started with several months of taxes and insurance in it. Borrowers will make additional deposits through their monthly mortgage payments. The amount will be equal to 1/12 of the annual taxes and insurance premiums. In New Jersey the taxes are paid quarterly and the insurance annually. This insures the lender has sufficient funds in you account to pay these bills.

Have new regulations in residential mortgage financing become a problem or a solution to the mess we have experienced in the new jersey mortgage and housing market. First let us understand how and why we have the problem’s we have. Lose lending practices and the demand for a better return on mortgage back securities for wall street investors. An example of  theses loans;  some borrowers were able to purchase homes with straight 100 % financing or 80 / 20 loans. These loans flooded the marketplace. Some of these loans didn’t require a Borrower to verify any income and allowed seller to pay most of the closing costs associated with the home purchase. Government was well aware of these practices and as matter of fact encouraged it,  making  owning a home easier for everyone. This was fine with low nj mortgage rates and a housing market that was booming with values appreciating in some areas1-2 % a month.

So now lets fast forward housing reached its threshold and buyers stopped the mad rush to overbid on properties. Then values started dropping. Borrowers with the creative financing started having trouble keeping up with their mortgage obligation. Some tried to refinance to lower nj mortgage rates and found lower values meant no equity hence no refinance. These borrowers had no financial interest in the home and found it easy just to stop paying or walk away.

Here are some regulation change and what they are proposed to do. First we HVCC home valuation code of conduct. This new law disallows any lender, broker or originator to have any direct contact with an appraiser. All appraisals are to be ordered through management companies. This is to ensure the lender has no influence on the appraiser. Next is Truth in Lending, the lender cannot accept any fee other that the nominal credit report fee until the borrower receives the completed  truth in lending form in the mail..And finally the new good faith estimate and hud 1, and hud 1a or referred to as the closing statement. This is to ensure borrower that the estimate of closing fees is exactly the same at closing on the hud form as it was at time of application on the good faith.

Are these changes beneficial to home loan borrowers or just the governments way of fixing and over regulating a problem they help create.