Bruce Busch
Weidel Realtors
(609) 737-1500

Financing your home

If you've budgeted realistically, you shouldn't have any problems. If you are extending your budget to the limit, the seemingly impossible can still come true with the help of your Weidel sales associate. Because Weidel is one of the leading comprehensive real estate companies, Bruce can help you obtain financing with the best terms through our affiliate mortgage company, Princeton Mortgage Corporation, where you'll enjoy personalized service and guidance with no obligation. 

Below are some major alternatives you should be aware of when determining the financing method that best suits your financial needs.

Adjustable Rate Mortgages (ARM)

An ARM has changeable interest rates that reflect current market rates. Periodically, rates are moved up or down according to an index that is beyond the control of the lender. For example, the index may be a monitor of average mortgage costs across the country or of Treasury bill rates. To help increase consumer affordability, some lenders offer the ARM at less than the current rate for fixed-rate mortgages. 

When interest rates are high, the ARM could be good for you because you won't be locked into a 30 year mortgage at high rates. An ARM may also help you to qualify for a larger mortgage.

A short term mortgage loan that may be useful when interest rates are high. With a balloon mortgage, you make payments as if the mortgage were long term but at a lower rate. However, the balloon mortgage is short term. When the balloon mortgage becomes due, you must pay off the entire unpaid balance. To do this, you must either obtain a new mortgage or sell the house. 

A buy-down is a method of temporarily lowering the interest rate on a fixed rate mortgage. A mortgage can be bought down by paying additional points to a lender which will decrease the interest rate for a fixed period.

A buy-up is a method of lowering the total mortgage origination points by increasing the interest rate.

FHA insures mortgages for up to approximately 97 percent of the property value. FHA limits the loan amount by geographic area. FHA has designated certain high-cost areas where the limit is extended. Your Princeton Mortgage Corporation Loan Officer can tell you if your area is included. FHA mortgages can be for new or existing homes.

A blanket term covering an array of custom conventional loans offered by the home seller in an effort to produce a more affordable sale. The interest rate and terms are negotiable, but they're generally at below-market rates.

The VA guarantees lenders against loss up to a certain amount if the property is foreclosed because you cannot pay. The VA appraises the property before guaranteeing a loan. In most cases, you will not have to make a down payment unless the sale price exceeds the appraised value. If the sale price is above the appraised value and you still wish to purchase the property, you'll have to pay the difference as a down payment. Eligible veterans include those who've served since September 15, 1940, have honorable discharges, and have served a certain number of days. Spouses of veterans whose deaths were related to military service are also eligible if they have not remarried. You have to pass a credit check and meet income requirements.

In some instances, personal economic events, ability to verify income or assets, and/or substantial monthly debts in relationship to income may influence a borrower's qualification for a conventional, FHA or VA mortgage program. Princeton Mortgage Corporation provides specialists dedicated to accommodating these Non-Agency mortgage requests.

When comparing mortgages, our Princeton Mortgage Corporation Loan Officer will provide you with information to help you understand the answers to important questions you should ask: