New Jersey (NJ) Refinance & Mortgage Rates

Following the subprime mortgage crisis, the U.S. Federal Housing Authority (FHA) has become a major player in the no cost refinancing industry. Home equity loans, short loans, and home renovation loans are some of the many refinancing options offered through the federal government and FHA-approved banks. FHA loans include something for just about everyone, from the financially-strapped home buyer with an upside-down mortgage to someone whose home investment has paid off handsomely. Here are some federally-supported options that are paying off for New Jersey home buyers.

New Jersey Home Equity Loans

FHA Streamline 203(K) loans are a popular way to pull equity from a home for repairs or upgrades. Sometimes this becomes necessary when a home is appraised and found to be not up to code. Other times, owners simply want to enhance the residence before moving in or renting it out. The 203(K) loans essentially combine up to 95% of the value of a home plus up to $35,000 to cover renovations. Each loan can be used for a one-unit to four-unit dwelling.

Streamline 203(K) loans are arranged with fixed 10 year, 15 year, 20 year, 25 year, or 30 year refinance rates. The shorter the loan, the lower the interest rates – but many people prefer longer term loans for their low monthly payments.

Energy Efficient New Jersey Refinance Mortgage Rates

Home owners who have joined the green revolution can get loan assistance through the FHA’s energy efficient mortgage (EEM) plan. This involves the owner getting a home inspection to establish that the home complies with requirements set by the U.S. Department of Energy. An EEM loan from the Federal Housing Authority is a way to simultaneously lower utility bills and add to the long-term value of one’s home.

Upside-Down Mortgage Loans

Many New Jersey homeowners owe more to banks than they can possibly pull from their properties. The FHA’s Short Refinance gives people the chance to refinance with affordable payments — and the resulting loan cannot exceed 115% of the home’s value. This loan option requires an agreement from the original lender.

Who is Eligible for Lower Rates in New Jersey?

With private companies, it’s often only the ultra-rich who get appealing mortgage rates. But with FHA, regular home buyers can enjoy some of the best deals. Current plans will refinance homes for people with credit scores as low as 500.

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