If you are thinking of purchasing a home in New Jersey yet you are burdened by the thought of paying expensive monthly mortgages, here are a few New Jersey mortgage programs created by the State of New Jersey and the Federal Government to extend mortgage assistance to its citizens. The government has recognized the problem that paying mortgage can be very grueling. This is the reason why they have created the First-Time Home Buyer and Urban Target Program, the Smart Growth Program, and the Live Where You Work Program.

If you do not have a home for the past 3 years or if you are living in urban regions of New Jersey, you can avail of their First-Time Home Buyer and Urban Target Program given that you have a 30-year fixed rate mortgage term and a one- to four-family unit. If you are planning to purchase a home in a Smart Growth area in NJ and you are currently under the first program abovementioned, you can apply for their Smart Start Program which offers second mortgage, which is approximately 4% of the first mortgage availed. You can use the second mortgage to pay for the down payment of your new home or you could use it to close the mortgage of your old house. If you are living far from your workplace and you are planning to purchase a unit closer to it to make it more accessible and convenient, the Live Where You Work Home Buyer program can help you avail of below market mortgage rates to purchase your new home.

The best place to start looking for affordable mortgage rates is with the bank that you currently bank with. Sometimes they are willing to offer mortgages to you at lower rates than normal especially if you have been timely on making payments on any other loans you have taken out with them.

However if you feel that the mortgage rates they are offering are no different then of course you should look at going to another bank or to a company that offers mortgage loans instead. Sometimes these types of institutes are willing to offer a lower rate on the loan simply because they want to get your business. But be prepared when getting your mortgage from another bank that you may be required to transfer your other accounts to them as well.

Of course if they do offer you a mortgage at a lower rate now you can go back to your own bank to see if they will match it. Again they may be more willing to do this especially if they think that they are likely to lose all of your business.