Understanding How Flood Insurance and Mortgages Impact Prices in the Long Beach Island New Jersey Real Estate Market
For most buyers in the LBI NJ real estate market a mortgage will be required. Generally speaking a monthly mortgage payment is made up of several components including principal, interest, taxes, homeowners insurance and flood insurance. Understanding how flood insurance and mortgages in the LBI NJ real estate market interact and impact one another is an essential step to investment on Long Beach Island.
Flood Insurance and Mortgages in the LBI NJ Real Estate Market
Flood insurance is a requirement for any purchase with a mortgage so there are obvious impacts to the LBI real estate market. Specifically:
- The flood insurance rate must be taken into account when determining a monthly mortgage payment
- A high cost of flood insurance can be a major deterrent in the sale of some homes
- Homes that are well below base flood elevation may have to reduce their sales prices to compensate for their higher ownership cost
It is important that all buyers understand the cost of flood insurance in the LBI New Jersey real estate market. Thoroughly evaluating how the cost translates into one’s mortgage and impacts the long term cost of the home is essential. I am happy to go over the individual cost of any home and discuss how it will translate into your ability to purchase a home in the LBI real estate market. For more information about an flood insurance and Long Beach Island real estate, please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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