March Mortgage Newsletter

March Mortgage Newsletter

Great New No Income Verification and Renovation Mortgage Program!
We have an awesome new program for both Owner Occupied Homebuyers and Investors that are looking to purchase a property that needs renovation or a new construction loan. It is a true no Income Verification program that takes some of the hassle out of what can be a cumbersome process for renovation loans.

There is a need for innovative programs that facilitate purchasing properties that need renovation. The program offers 90% financing (10% Down payment) for the purchase of the property and 90% of the cost of renovation. A minimum of 620 Credit score is required. While there are many programs for owner occupied homebuyers such as the 203 (K) loan, this new program is unique since it is a true No Income Verification program. Please call me for more information or to see if you qualify.

For those that are looking to construct a new single family home on land, 25% down payment is required for purchasing of the lot and 90% of the construction cost can be financed. Again, no income verification is required.

In the last week or so, we had a considerable jump of almost .25% in mortgage interest rates. The trend of volatility in mortgage rates continues. Although our rates are consistently .25% to .375% lower than our competitors, our rates are up .25% since the February Newsletter.

Conventional 30 Year Fixed 4.25 % APR

Conventional 15 Year Fixed 3.75% APR

FHA 30 Year Fixed 3.625%

10 Year ARM 4.125%

7 Year ARM 4.125%%

Our 30 Year rate is up .25% and the 7 ARM and 30 Year Fixed are the same. This is unusual. It is also unusual for the 30 Year Fixed to increase .25% and the ARMs increase .5%. There is only .125% difference between the ARM and Fixed rate. This is also very unusual. The 30 Year fixed is certainly a better value than the ARMs.

Joel Kan of the Mortgage Bankers Association’s announced the U.S. homeownership rate increased 64.8% in the fourth quarter of 2018. This is the highest rate since 2014. This is good news and an indication that many of the forecloses have been absorbed by the market.

Fed Chairman Jerome Powell recently testified on Capitol Hill regarding the economy. Mixed signals were sent regarding future interest rates. While the mandate is for future increases, they may become less frequent and stabilization. Some are even suggesting decreasing the rate.

Numbers are in for January from the New Jersey Association of Realtors:
New Jersey 1- 2018 1-2019 % Change
New Listings 13,270 14,347 +8.1%
Pending Sales 7,519 8,078 +7.4%
Closed Sales 7,320 7,012 -4.2%
Median Sales Price $271,000 $285,000 +5.2%
Average Sales Price $349,410 $56,255 +2.0%
Days on Market 73 73 0.0%
Affordability Index 153 144 -5.9%
This is a very interesting start to the year and great to build momentum for the spring market. The number that sticks out is Closed sales of negative 4.2%. While this may be alarming, there was a lack of inventory and interest rates were significantly higher in December. A huge increase in new listings and pending sales should bring up the closed sales number in the future. Median Price is up +5.2% and let’s see how the increase in inventory will effect this number. Affordability continues to decrease and that is a result of the increase in prices. New Jersey remains a well-balanced market good for both buyers and sellers.

Vibha Singh



NMLS ID 66034

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