By Robert A. Vandenbergh

The National Association of Realtors (NAR) recently reported their Affordability Index in New Jersey reached its highest point in years in 2010. 2011 Investment and Vacation Home Buyers Survey also revealed the national median vacation-home price in 2010 was down 11.2 percent from 2009, and the median investment-home price was down 10.5 percent.

While this isn't welcome news for sellers, the combination of affordable prices and favorable interest rates has created ideal circumstances for first-time, empty-nester, and second-home buyers who have a good credit history.

Before setting out to preview the new listings, it’s a good idea for buyers to determine the mortgage amount for which they qualify, and for them to know what financing options are available.

Banking institutions provide several mortgage solutions including, fixed-rate mortgages, adjustable mortgages, home equity lines of credit and refinancing.


Here are some questions to ask your lender about the different mortgage options:

• What loan is best suited for me based on my current needs?

• What are the terms of loan amortization on each of your loan options?

• Do you offer a lifetime cap on adjustable rate mortgages?

• Which index is used to determine the interest rate on an adjustable rate mortgage, and how often can rates be adjusted?

• Are there any prepayment penalties?

To learn more about Lakeland Bank's mortgage options visit our Website, Facebook Page, schedule an appointment through our Call Center (866-224-1379) or visit your local office.