orly chen – bergen county's premier real estate agent

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“Good mortgage information is key to the success of any real estate transaction
especially when purchasing a home in Bergen County, NJ.”

Information About Mortgages in Bergen County, New Jersey

Many different kinds of loans are available for homebuyers in the mortgage market, with new options constantly being introduced. While the details can seem overwhelming, there are certain qualities that extend to all mortgage loans. It pays to consult with an attorney or real estate professional like Orly Chen for more advice.

Principles of All Mortgage Loans

In mortgages, the purchased home is used as security to back up the loan. If the borrower defaults by not making payments on time, the mortgage lender can demand the sale of the home.

The larger the loan is compared to the home’s value, the more risk it presents to the lender. The loan becomes more expensive to reflect that difference.

The interest earned by the lender always equals the periodic interest rate multiplied by the outstanding principle balance of the loan. The periodic interest rate is the annual interest rate divided by the number of payments in the year, most often one per month, or 12.

Each required payment generally is a bit higher than the interest due, which ensures that some of the loan principal. The process, called amortization, allows most mortgage loans to be retired after all the monthly payments are made.

Features of All Mortgage Loans

Mortgage loans can be classified in one of the three following ways:

Fixed payment and fixed interest rate: fixed rate mortgages
Fixed rate but variable payment: graduated payment mortgages
Variable rate and variable payment: adjustable rate mortgages

Homebuyers seeking a mortgage should always shop around for the best terms. If the terms seem almost too good to be true, however, be careful to check the other features of the loan. Consider the case of variable rate loans, which often have lower interest rates to start, but buyers face the risk that interest rates could rise substantially in the future.

When in doubt about your mortgage loan, ask Orly Chen. As a trusted leader in North New Jersey real estate, she can put your mind at ease, or refer you to a partner who can answer your mortgage questions.

First Time Homebuyers

In a special effort to stimulate the housing market, the U.S. Congress passed and then extended a first-time home buyer tax credit for up to $8,000 for first-time homebuyers. The legislation also provides a tax credit up to $6,500 for current homeowners who purchase a new or existing home. To qualify, a home must be purchased for use as a principal residence before May 1, 2010, with closing to take place before July 1, 2010.

In New Jersey, residents may be eligible for a special first-time homebuyer insurance rate available from the New Jersey Housing and Mortgage Finance Agency. The below-market, 30-year fixed interest rate is available to first-time homebuyers and urban area buyers. Down payments of as little as 3.5% are required, and debt-to-income ratios as high as 38% are permitted. Restrictions apply according to home price and income level.

When in doubt about your mortgage loan, ask Orly Chen. As a trusted leader in North New Jersey real estate, she can put your mind at ease, or refer you to a partner who can answer your mortgage questions.


Mortgage Payment Estimator

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About Orly Chen

  Orly Chen is a leading
Tenafly real estate agent
in Northern New Jersey
specializing in the Bergen
County area. Her
outgoing personality,
honesty and
approachability and
integrity make Orly
one of the most sought-
after agents in the
Northern New Jersey
real estate market


Orly Chen on Zillow

Orly Chen on Zillow
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