| Getting a New Jersey home mortgage loan can be | | | | Paying points on a New Jersey home mortgage loan |
| an exciting process. New Jersey is a wonderful place | | | | is very common. Points are a way for lenders to |
| to live and homes are typically a good investment. | | | | make money on the loan. Borrowers may also pay |
| However, you shouldn't get so caught up in the | | | | points in exchange for a lower interest rate. One |
| excitement that you miss important information | | | | point is equal to one percent of your mortgage loan. |
| about the loan process. To help you out, here are | | | | The good news about points is that they are usually |
| three things you should know about mortgage loans: | | | | tax deductible. |
| Your Options Are Endless | | | | Your Credit Affects Everything |
| The days of having only one mortgage loan program | | | | Most people know that a low credit score will have |
| to choose from are long gone. Borrowers today | | | | an effect on the interest rates that they pay on a |
| have a whole slew of creative financing options | | | | loan, but what they don't realize is that their credit |
| available to them. There are balloon loans, interest | | | | score will also affect closing costs and PMI (Private |
| only loans, 40-year loans, 80/20 loans, and dozens | | | | Mortgage Insurance) premiums. Anyone with a credit |
| upon dozens of other loan programs to choose from. | | | | score below 620 is usually considered a subprime |
| Before you jump on the first approval that comes | | | | borrower and can expect to pay higher costs on |
| your way, you should take time to investigate all of | | | | every aspect of their New Jersey home mortgage |
| your options. | | | | loan. |
| You Will Probably Have to Pay Points | | | | |