| The state of New Jersey has recently come out | | | | what your payment will be, is a good thing. |
| with some statistics regarding the most popular | | | | Only about 10% of people in NJ, choose an |
| mortgage programs in here. These products are very | | | | adjustable rate mortgage (ARM). People around here |
| popular with NJ residents, because New Jersey is a | | | | generally like a sure thing, that is, they like to know |
| very important state to our national economy, and | | | | exactly what their mortgage payment is going to be |
| rates rise and fall very quickly here. The goal of | | | | every month. When someone gets an adjustable |
| these mortgage products is to stimulate the | | | | rate mortgage product, their rate moves up and |
| economy, and to get the market for homes in NJ for | | | | down violently when we face tough economic times |
| sale, going again. There are many NJ mortgages in | | | | in this state. And becasue home values in New |
| foreclosure right now, and we need to do something | | | | Jersey are still pretty high, and public companies' |
| about it. The more popular mortgage programs are | | | | stock is still very volatile, NJ residents generally do |
| popular because they are safer. In the following lines, | | | | not choose the ARM programs. |
| I will out line some of the major programs in New | | | | The remaining 10% of home owners in NJ, seem to |
| Jersey, that people can use to purchase, or to | | | | choose some type of a "balloon" mortgage program. |
| refinance their houses. | | | | With this program, NJ home owners can realy on a |
| Many people in NJ go with low rate and fixed rate | | | | steady monthly payment for say, 5 or ten years |
| mortgage products. 80% of people living in this state | | | | straight. After the initial fixed rate period of 5 or ten |
| choose the 15 year or 30 year fixed rate mortgage | | | | years, the rate shoots up much higher, sometimes |
| product, over anything else. People here generally like | | | | almost double what it was previously! Most people in |
| the fixed rate program, because it provides stability, | | | | this state, who choose this mortgage product, do so |
| and people know what to expect. New Jersey can | | | | because they are planning on moving out of NJ |
| be a very volatile economy, so knowing exactly | | | | before that fixed rate period is up. |