Finance
The NJ Homebuyer Assistance Program through NJHMFA provides what type of financial help to eligible first-time buyers?
AA 10% cash grant with no repayment
BDown payment and closing cost assistance in the form of a forgivable second mortgage or deferred loan✓ Correct
CA reduction in property taxes for 10 years
DZero-interest lines of credit for home improvements
Explanation
NJHMFA's down payment assistance is typically structured as a second mortgage loan that may be forgivable or deferred, making homeownership more accessible for eligible first-time, income-qualifying NJ buyers.
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Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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