Mortgages

Frequency Asked Questions

Q: What is a mortgage?

A: A mortgage (also referred to as a home loan) is a legal contract made between a lender and a borrower that uses property as collateral to secure the loan. The lender can take possession of the property if the borrower fails to pay the prearranged mortgage payments.

Q: What is a reverse mortgage?

A: Reverse mortgages are loans that allow homeowners to transfer some of their home equity into cash. In contrast to traditional home loan mortgages, reverse mortgages do not require borrowers to repay their home loan until the homeowner no longer lives primarily at that residence, although homeowner still owns the residence.

Q: What does APR mean?

A: Annual Percentage Rate (APR) is the percentage used to determine the total cost of your loan by taking into account all fees charged by the bank in addition to your loan principle and interest.

Q: How do you calculate LTV or loan-to-value ratio?

A: The loan–to-value (LTV) ratio of your home is calculated by dividing the fair market value of your home by the amount of your home loan.

Press Releases
10
Feb

1st Constitution Bancorp Announces Closing of the Merger of Rumson-Fair

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5
Feb

1st Constitution Bancorp Reports Strong Fourth Quarter and Annual Results

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