New Jersey Mortgage Rates
Compare New Jersey mortgage rates and choose the best option for your needs.
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Mortgage in New Jersey: Top Lenders in 2024
Are you considering purchasing a home in the vibrant state of New Jersey? One of the most convenient ways to make your dream a reality is by utilizing a mortgage loan, regardless of whether you're eyeing a spacious residential estate or a cozy apartment. However, it's important to note that the terms and conditions of home loans can significantly differ between various mortgage lenders (use our mortgage calculator to estimate your future expenses). In this comprehensive guide, we'll delve into some of the leading mortgage lenders in the state, analyzing their offerings to identify the ones that stand out as worthwhile options for your home-buying journey.
NJ Mortgage Lenders Comparison
Each lender we've examined is a reputable company known for its reasonable rates and proven track record. To provide you with comprehensive insights, we'll meticulously compare them across several key criteria, including APR, minimum down payment, eligibility requirements, and more.
Morty, Inc. Mortgage
Not a lender by itself, but a mortgage broker, Morty, Inc. appeared in 2016. While its physical headquarters are situated in New York City, Morty offers near-nationwide coverage, with the exception of four states: Hawaii, Massachusetts, Missouri, and Nevada.
Morty provides a range of mortgage options, including fixed- and variable-rate conventional and jumbo mortgages, along with FHA-insured loans. Notably, refinancing is exclusively available for loans originally procured through Morty.
For instance, a 30-year fixed-rate mortgage through Morty carries an APR of 6.667%. Rates for shorter-term loans, such as 20- and 10-year options, are comparatively lower, standing at 6.425% and 5.452%, respectively. To qualify, applicants must have a credit score of at least 600 and maintain a debt-to-income (DTI) ratio of 45% or less. The minimum down payment varies based on the size of the property.
| Pros: | Cons: |
|---|---|
| A closing date guarantee. | No general refinancing. |
| Large partner network. | No VA or USDA plans. |
Amboy Bank Mortgage
Amboy Bank is an extremely well-established financial institution located in New Jersey since its founding in 1888, that provides mortgages among many other financial services. One of its standout offerings is the biweekly mortgage plan, a flagship product designed to accelerate homeowners' equity. Equivalent to 13 monthly payments annually, this plan boasts an advertised APR of 5.75% for 10- and 15-year terms, and 6.50% for 30-year terms. Loan amounts within this program range from $50,000 to $500,000.
For larger loans, categorized as jumbo, Amboy Bank provides competitive rates slightly higher at 5.875% for 25 years and 6.625% for 30 years. Additionally, traditional monthly plans are available for purchase, refinancing, and construction, offering both fixed and variable rates, including non-conventional mortgages to suit diverse financial needs.
| Pros: | Cons: |
|---|---|
| Offers a biweekly plan. | Restricted to New Jersey. |
| High credibleness. | Doesn’t offer federal-insured loans. |
| Construction loans available. |
Rocket Mortgage
Since its founding in 1985, Rocket Mortgage has established itself as the single most popular mortgage lender (and most successful lender overall) in the United States.
Rocket Mortgage offers a diverse array of mortgage options, including adjustable-rate mortgages, refinancing solutions, FHA- and VA-backed plans, among others. Despite its widespread popularity, it's important to note that Rocket Mortgage's rates typically surpass the industry average. For instance, under near-optimal conditions, the APR for a fixed-rate 30-year mortgage can reach as high as 7.199%.
| Pros: | Cons: |
|---|---|
| Available nationwide. | Relatively high rates. |
| Abundance of third-party information. | Lack of USDA loans. |
Average Mortgage Rate in New Jersey from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in New Jersey.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in New Jersey
| Criteria | Amount, $ |
|---|---|
| The median home value in New Jersey | $440,119 |
| The income required to buy the median priced home in New Jersey | $72,112 |
| The monthly mortgage payment required to buy the median priced home in New Jersey | $1,670 |
| The median household income for New Jersey | $94,371 |
Things to Consider When Choosing a Mortgage Lender
Securing a mortgage loan entails a significant commitment spanning anywhere from 15 to 30 years, underscoring the importance of careful consideration before finalizing an agreement with any lender. When evaluating lending options, several fundamental aspects warrant careful attention.
Type of Lender
In essence, prospective homebuyers typically weigh two prominent options: traditional banks and online mortgage lenders. While banks often present enticing rates, they typically enforce rigorous credit checks, resulting in longer approval times and stringent eligibility criteria. Conversely, online lenders operate with swifter processes and generally impose less stringent requirements on homebuyers.
APR and Fees
Every mortgage loan comes with associated costs that extend beyond the interest rate alone. These costs encompass additional fees like the origination fee, mortgage insurance fee, closing costs, and more. As of the current writing, the average mortgage rate for a fixed-rate 30-year loan in New Jersey stands at 6.58%.
Terms and Conditions
Here, you need to consider the minimum size of a down payment, which often varies from 0% to 20% depending on the loan type, your current status (military, employed, self-employed, etc.). Another important parameter is the lifespan of the loan, which is its total length. Common options are 15 and 30 years.
What Mortgage Lender is the Number One in New Jersey?
The list of reliable NJ mortgage lenders is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To take your pick wisely, check our list of recommended lenders.
First-Time Homebuyer Programs in New Jersey
Navigating the process of purchasing a first home can be daunting, but residents of New Jersey have access to various government programs aimed at enhancing mortgage affordability.
One such program is the Federal Housing Administration (FHA) loan program, which offers buyers insurance from the federal government. The insurance fee is bundled into the total loan cost, providing buyers with benefits such as a low interest rate and minimal credit requirements. With the FHA program, individuals with a FICO score as low as 500 and a debt-to-income ratio of just 50% can qualify.
Additionally, there's the USDA loan program, tailored for those residing in rural areas. Participants in this program may secure a mortgage loan with no down payment required. However, eligibility hinges on ensuring that their annual income does not surpass 115% of the average income in their region.
For former military personnel or their spouses, the VA loan programs, insured by the Department of Veteran Affairs, offer another avenue for mortgage assistance.
Pre-Approval: What Does It Mean?
Preliminary approval is a sort of confirmation of a prospective homebuyer’s credibility. It lets home sellers know that lenders are ready to approve a mortgage loan to the buyer. To get a pre-approval one needs to provide documentary evidence of his paying capacity. A typical document set includes earning statements, account statements, a W2 form, or an alternative proof of income for at least 2 years. Additionally, it’s necessary to fill in the Uniform Residential Loan Application form.