State Announces New 30-Year Fixed Mortgage Interest Rate for First-Time Buyers
In an effort to further boost the state’s housing market, the Department of Community Affairs and the New Jersey Housing and Mortgage Finance Agency have announced a new fixed interest rate of 3.5 percent for a mortgage with a 30-year term for qualified first-time home buyers and “urban target area” borrowers.
The new 3.5 percent interest rate, which becomes effective today, is the lowest rate ever offered by the HMFA.
In addition to the 3.5 percent home buyer program interest rate, the HMFA is also offering a low interest rate mortgage program for members of the New Jersey Police and Firemen’s Retirement System who have a minimum of one year of creditable service. The current interest rate is fixed at 2.88 percent for a 30-year term on a maximum mortgage amount of $417,000. This financing can be used to buy an owner-occupied principal residence.
“These new, attractive mortgage interest rates, coupled with quality housing in the state’s inventory, create a perfect scenario for those contemplating their dream of home ownership,” said Department of Community Affairs Acting Commissioner Richard E. Constable, III, who chairs of the HMFA. “Home ownership is a key priority and we are confident these new rates will help to jump-start the real estate market.”
The HFMA also offers a “smart start program” for participants in the home buyer program who are purchasing homes in so-called smart growth areas. The program offers a second mortgage for up to 4 percent of the first mortgage, to be used for the down payment and closing costs.
“There has never been a better time to buy a home in New Jersey,” HMFA Executive Director Anthony L. Marchetta said in a press release about the new rate. “This includes offering affordable home mortgages for first-time home buyers and encouraging owner-occupied housing growth as a means to stabilize New Jersey neighborhoods.”
Since its inception in 1983, the HMFA has provided low-cost home ownership financing to more than 97,000 New Jersey families. The HMFA offers a variety of mortgage loan products. Prospective borrowers should contact their local lenders for more details.