Michael J. Bovaird

Loan Officer NMLS#: 223593

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Phone: 201-610-0222
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When shopping for a mortgage loan in New Jersey, you have a lot of options. The key is to make an informed decision — and we can help! This is the first in a two-part series that explains the different types of mortgage loans in New Jersey. It examines the key differences between fixed and adjustable-rate loans.

Types of Mortgage Loans in New Jersey

One of your primary choices has to do with the rate structure on your loan. You can choose to have a fixed-rate mortgage with an interest rate that remains the same over time, or an adjustable-rate mortgage that can change or “reset” over time. Its important to select a mortgage program that meets your financial goals and objectives.  Here are the key differences between a fixed and adjustable:

Fixed-Rate Loans Offer Long-Term Predictability

A fixed-rate mortgage loan (FRM) has an interest rate that stays the same for the entire repayment term. The rate you receive when you first take out the loan is the rate you will keep for as long as you hold onto it.

Payment stability and predictability are the primary advantages with this type of New Jersey mortgage loan.

Fixed-rate loans come with different term lengths, with 15 and 30-year being the most popular. The 30-year fixed mortgage, in particular, is the most popular financing option among home buyers in New Jersey and nationwide. Many borrowers prefer this option because it offers a degree of certainty, and it reduces the monthly payments by spreading them out over a ...


Are you thinking of buying your first home in New Jersey in 2018? If so, keep reading. Below, we have rounded up the latest mortgage industry and housing market news that’s relevant to home buyers.

5 Things to Know When Buying a First Home in New Jersey

Home prices across the state are still rising, and additional gains are expected in 2018. Interest rates might trend upward over the coming months as well. Inventory remains tight in some NJ housing markets. These are just a few of the trends you should know, when buying your first home in New Jersey in 2018.

1. Home prices are still rising, and will likely continue in 2018.

On average, house values across the state of New Jersey have risen steadily over the last couple of years. And the latest round of predictions from economists suggest they will continue to rise into 2018 as well. This is the first thing you should know about buying a home in New Jersey in 2018.

According to the real estate information company Zillow, the median house value for NJ reached $308,300 in October 2017. That was a 5% increase over the same month a year earlier. Looking forward, the company’s economists expect prices to continue rising through the end of 2017 and into 2018 (though they could slow down a bit).

2. Housing market inventory declined during 2017.

While housing markets across New Jersey are not as tight as they are in places like California and the Pacific ...


Closing costs are a big concern for New Jersey home buyers, because they represent an out-of-pocket expense that typically must be paid up front. There’s also a lot of confusion surrounding this topic. With that in mind, here are five things you should know about home buyer closing costs in New Jersey.

1. Typical closing costs and pre-paid expenses for NJ home buyers are 2% to 3% of the purchase price.

The finalized amount of closing costs a buyer pays in New Jersey can vary, due to a number of factors. Generally speaking, a more expensive home will result in higher costs. But that’s just one variable that can affect the amount you pay to close on your home.

As of 2017, home buyer closing costs in New Jersey tend to average somewhere between 2% to 3% of the purchase price. But they can fall outside of this range as well, in some cases.

New Jersey home buyers who buy a home for $400,000 with a 20% down payment pay approximatley $6,700 in closing costs (not including pre paid expenses). Prepaids are not a fee, but are costs associated with the home that are paid in advance when closing on a loan. These include Property Taxes, Homeowner’s Insurance, and Mortgage Interest that will accrue between the closing date and month-end. Property Taxes and Homeowner’s Insurance are collected to put into your Escrow Account so that you have enough reserves to pay these bills then they are due.But again, ...


Do you plan to buy a home in New Jersey in 2017 or 2018? If so, we’re willing to bet you have a lot of questions about the steps that occur along the way. And we’ve got you covered. Here is a step-by-step overview of the home buying process in New Jersey, updated for fall 2017.

Steps in the New Jersey Home Buying Process

To help you understand the buying process, we’ve broken it down into seven common steps. The process can vary slightly from one person to the next, due to the many variables that are involved. But it usually goes something like this:

  1. Establish your budget and research the market.
  2. Research and choose a type of home loan.
  3. Get pre-approved by a lender.
  4. Find an experienced New Jersey real estate agent.
  5. Begin the house hunting process.
  6. Make an offer and, if necessary, negotiate with the seller.
  7. Close the deal and get the keys to your new house.

Step 1: Determine your budget and research the market.

Before you start house hunting, do some basic budgeting math to determine how much you can afford to spend each month ...


For many home buyers in New Jersey, the down payment represents the single biggest obstacle to homeownership. But in some cases, it’s only a perceived obstacle. The truth is today’s down payment requirements for New Jersey mortgage loans are lower than most people realize. Here’s what you should know about it, as a home buyer.

A 20% Down Payment Isn’t Always Necessary

A 2016 survey conducted by the National Association of REALTORS® found that 66% of people thought they needed more than 20% for a down payment on a house. That’s a common misconception.

The truth is borrowers don’t necessarily need a down payment of 20% to buy a house. The average down payment among New Jersey home buyers is somewhere around 10%, and there are financing options available today that allow for an even smaller down payment. But a lot of people don’t realize this.

Home Loans With Lower Investment Requirements

Can’t come up with 20% when buying a home in New Jersey? You still have options. Here are some examples of financing strategies with a lower down payment requirement.

  • Conventional loans with 3%: Fannie Mae and Freddie Mac, the two government-sponsored enterprises ...

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