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New Jersey Mortgage Loans

Prospective homeowners in New Jersey are perfectly positioned to take advantage of the tremendous deals available in the real estate sector, with interest rates on mortgage loans at an all time low and home prices at levels not seen since the mid nineties. Potential homeowners should do some research and act now before these great opportunities pass them by, especially if their looking to buy their first home.

With the current state of the economy many potential homeowners are wondering if this really is the best time to buy a home, I’m here to tell you that it is. First of all, interest rates on mortgage loans are historically low - at levels not seen since the nineteen seventies. With interest rates this low, more consumers are going to start shopping for real estate, meaning that interest rates will start going up as the economy improves. The Federal Reserve is predicting economic recovery beginning around mid 2009.

Home prices are down to levels not seen since the mid nineties, mostly because of an influx of distressed properties on the market. As more investors pick up these properties, prices will start to return to normal. There are plenty of signs that this is starting to happen because the FDIC has seen an increase since September 2008 in the amount of lending that financial institutions have been providing. Also applications for new mortgage loans have been steadily increasing since January 2009. All this points to the fact that the economic recession will end as predicted sometime around mid 2009.

First time home buyers have a great opportunity available to them right now. First time home buyers considering homeownership should also consider this: The Federal Government is now giving first time home buyers a tax credit on their 2010 tax return for the purchase of their first home. This credit is ten percent of the total purchase price or eight thousand dollars whichever is lower. They do not have to pay it back as long as they maintain ownership for a period of three years.

Eight thousand dollars is about $650.00 when you divide it out over twelve months, with interest rates on mortgage loans as low as they are, the payments on an ninety thousand dollar home will be between four and five hundred dollars a month. Considering this, first time home buyers could not ask for a better chance to put themselves on a firm financial footing for the future. Whether you’re a first time home buyer or just looking to take advantage of the all time low interest rates on mortgage loans, I encourage you to research your options in this current real estate market.