Popular Mortgage Programs

The state of New Jersey has recently come out with some statistics regarding the most popular mortgage programs in here. These products are very popular with NJ residents, because New Jersey is a very important state to our national economy, and rates rise and fall very quickly here. The goal of these mortgage products is to stimulate the economy, and to get the market for homes in NJ for sale, going again. There are many NJ mortgages in foreclosure right now, and we need to do something about it. The more popular mortgage programs are popular because they are safer. In the following lines, I will out line some of the major programs in New Jersey, that people can use to purchase, or to refinance their houses.

Many people in NJ go with low rate and fixed rate mortgage products. 80% of people living in this state choose the 15 year or 30 year fixed rate mortgage product, over anything else. People here generally like the fixed rate program, because it provides stability, and people know what to expect. New Jersey can be a very volatile economy, so knowing exactly what your payment will be, is a good thing.

Only about 10% of people in NJ, choose an adjustable rate mortgage (ARM). People around here generally like a sure thing, that is, they like to know exactly what their mortgage payment is going to be every month. When someone gets an adjustable rate mortgage product, their rate moves up and down violently when we face tough economic times in this state. And because home values in New Jersey are still pretty high, and public companies' stock is still very volatile, NJ residents generally do not choose the ARM programs.

The remaining 10% of home owners in NJ, seem to choose some type of a "balloon" mortgage program. With this program, NJ home owners can really on a steady monthly payment for say, 5 or ten years straight. After the initial fixed rate period of 5 or ten years, the rate shoots up much higher, sometimes almost double what it was previously! Most people in this state, who choose this mortgage product, do so because they are planning on moving out of NJ before that fixed rate period is up.