If you’re a first-time home buyer looking to purchase a home, then you’re familiar with the high ticked price tags these homes come with. They have certainly skyrocketed. It’s common to feel discouraged and to feel as if homeownership is out of reach these days, but we’ve got good news. Luckily, there’s a wealth of homeownership programs in New Jersey that help home buyers secure a mortgage, make a down payment, cover closing costs, and more.
The state of New Jersey now offers a conventional version of their down payment assistance program for first-time buyers. Now, qualified clients can receive $10,000 to be used towards the down payment and closing with affordable mortgage insurance premiums that follows conventional mortgage guidelines.
Here’s Some Information About the New Jersey Conventional DPA Program:
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30-year, Fixed-Rate Conventional Loan
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Affordable Mortgage Insurance Premiums
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$10,000 for Down Payment and Closing Costs
Do You Qualify for the New Jersey Conventional Down Payment Assistance Program?
It may seem that this program is solely for first-time homebuyers, but the restrictions are somewhat flexible. First-time home buyers are borrowers that have not had an ownership interest in their primary residence during the previous three years. In addition, borrowers need to fall under certain income limits and meet a minimum credit score requirement of 620.
- DPA is a $10,000 forgivable loan with no interest and no monthly payments. Forgiven after 5 years as a primary residence (While grant funds are available).
- Single-Family Properties and Condos, Owner Occupied, Primary Residence in NJ.
- Income limits are determined by the county of the purchase property but must not exceed 80% of the Area Median Income. Please reference the Freddie Mac HFA Income Limits for additional details.
- Eligibility requirements, exclusions, and other terms and conditions apply.
Bottom Line
Greenway Mortgage is proud to offer this program to first-time homebuyers in New Jersey. We are here to help make homeownership a reality for you. Reach out today to learn more or to see if you qualify for the NJ Conventional Down Payment Assistance Program.
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Rate Watch | What This Means For Homeowners
If you haven't already heard the news, interest rates are on the rise. The Fed promised, and they delivered in their meeting this week.
The Federal Reserve Meeting
At their most recent meeting, the Fed moved policy rates up by 0.5%, just as they've been saying. Because it was expected, interest rates had moved in advance, including those for home mortgage loans.
What's Next With Rates?
It's expected the Fed will continue moving rates on an upward path at each successive meeting of the Open Market Committee, so long as conditions warrant. Most analysts anticipate the increases will continue until the Fed has met its directive of containing inflationary forces in the economy.
Background On The Fed
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The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.
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The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.
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This is the second increase this year.
What Does This Mean for Homeowners and Homebuyers?
If you are planning a home purchase or any type of refinancing, including accessing cash from your home’s equity, it may pay to act before further increases. You may want to explore alternatives, such as a lower rate, hybrid adjustable mortgage (ARM) or home equity line of credit (HELOC).
The Greenway Team monitors interest rates and the markets every day. Please feel free to reach out to one of our expert Loan Officers if you have any questions! Out team is happy to help.
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It's that time of year when many of us start making updates to our homes. May is Home Remodeling Month and Greenway Mortgage is celebrating all month long! Be sure to visit our Facebook and Instagram pages for remodeling inspiration, trends, and information regarding home improvement.
Since the pandemic, homeowners were encouraged to spend more time indoors and since then realized that their homes may no longer fit their needs like once before. Perhaps some of us need more space, or have always dreamed of a home office or gym, maybe an outdoor deck or kitchen for entertaining? Whatever the case may be, our wants and needs have certainly changed.
Many homeowners are happy with their home but know that home improvements can be made. Others may be looking to sell their home in this real estate market and are looking to potentially increase the value of their home. Home remodeling is a great way to improve the overall quality of your home and live a better lifestyle. You may even be able to tap into your home’s equity to pay for projects!
Let’s discuss some of the many reasons homeowners choose to remodel their homes.
#1 Interest Rates Are Low
While rates have increased they are still relatively low compared to historical trends and other loan p
roducts which makes it an ideal time to invest in home remodeling.
#2 Modernizing Your Home
Consider replacing cabinets, installing new light fixtures, painting rooms, or upgrading to new appliances.
#3 Energy-efficient Homes Save Money
Remodels that improve home energy and water efficient will reduce bills. Click here to learn about our Energy Efficient Mortgage Program. Whether you're a homeowner looking to improve your current home or are shopping for a home to purchase, you can use an EEM to make energy-efficient
improvements. Changes you make to your home can improve energy efficiency and lower heating/cooling costs.
#4 Improve Curb Appeal
The possibilities are endless when it comes to curb appeal. Improvements such as new siding, fresh paint, landscaping, a new front door or mailbox, or a new roof not only improve the first impression of your home, but they increase the home’s value and sales potential.
#5 Outdoor Living Spaces
Expand your home for entertaining! Add a deck, patio, or porch to your home or maybe an outdoor kitchen. These are very on trend for 2022!
#6 Kitchen Remodel
Remodeling your kitchen enhances functionality. Think about adding a new countertop and backsplash or updating worn or outdated flooring.
#7 Bathroom Remodel
A bathroom remodel can improve comfort and add home value. Why not create the refuge you need at the end of a busy day? Think about replacing vanities, installing a new sink or tub, or improving bathroom lighting. Did you know that if you add a bathroom, your home value could increase by twenty percent?
#8 Accessibility
Redesigning to accommodate future needs to make your home accessible, regardless of age or disability.
#9 Your Home Feels Stale
Sometimes minor remodeling projects is all that it takes. Paint your walls and baseboards and it will instantly feel fresh and clean. This is great for anyone on a budget.
#10 Make Your Basement Usable
Convert your basement into a living, office, or gym space.
Decide If You Need to Remodel Before Selling
If you’re looking to sell your home, take some time to think about what could be improved. For instance, the external appearance of your home is important for raising the value and sales potential. Fresh paint, clean shutters, a new roof, and landscaping are simple ways you can boost curb appeal if you’re looking to sell.
If you’re planning on big remodeling projects, consider the potential return on investment and if those projects are worth it. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but not all of them. In fact, you may be surprised by how well your house could fair in today’s sellers’ market. If you’re thinking of moving, try to avoid over-investing in big renovations if you won’t make the money back in the sale of your home.
Tip: Dig into the market value of your home and compare it to the actual cost of the remodel. A local real estate professional can help you determine your home’s market value. Once you know the value, get a few quotes from contractors on the potential remodel pricing. From here you can decide if a remodel will give you a return on investment when you sell.
Love Your Home and Aren’t Ready to Sell?
Remodeling allows you to customize your home to meet your needs and desires without building a new home or moving and giving up a familiar neighborhood and schools. More than ever, now is the time to take advantage of lower rates before they continue to rise. Why not make your dream home a reality?
Bottom Line:
Home Remodeling can bring many benefits to you, your family as well as your home. Whether you're working on your home and yard or just enjoying the spring, all of us at Greenway Mortgage wish you sunny days ahead! Happy Remodeling Month!
Resources:
- Free Pre-Approval
- Renovation Mortgage Programs
- Looking to tap into your home’s equity? Contact us to discuss your options.
If you’re not following Greenway Mortgage on social media, check us out on Facebook and Instagram.
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Did you know that interest savings may be hiding in your mortgage?
When you think of a mortgage loan, you typically think of interest costs. But if you consolidate other debts into your mortgage, you can start thinking of interest savings instead.
Most consumer debt carries a higher interest rate than home financing. If you access cash to pay off some of those debts – even at a slightly higher interest rate than your current mortgage – you can still save on overall interest expenditures.
And if you use your monthly savings to pay extra on your principal each month, you can pay off your 
mortgage faster and save even more.
Try Our Debt Consolidation Calculator
Erin the Expert has a Debt Consolidation Calculator that you can use to determine how much interest you’re currently paying. In addition, you’ll be able to see how much you can save with a new consolidation loan!
Have Questions About Debt Consolidation?
If you want to talk through your scenario, please reach out to the experts at Greenway Mortgage.
Our team is happy to assist you with any questions you may have!
