Investors in New Jersey who use interest-only financing usually do so to give a rental breathing room in the early stretch, whether during renovations, while rents settle or in areas where prices run high relative to rent. The structure lowers the starting payment but leaves the balance untouched, and the later payment is larger. The local data on this page can help you test whether a property can carry both payments.
Call to talk with a licensed loan officer. Programs vary by borrower, property and investor.
New Jersey landlord-tenant law: Truth in Renting: A guide to the rights and responsibilities of residential tenants and landlords in New Jersey. DCA's Truth in Renting guide covers New Jersey residential leases, renewals, security deposits, habitability, rent increases, and tenant protections; landlords of most multi-unit buildings must give tenants the current statement. Leases you show a lender should follow it.
Where the numbers point in New Jersey
Counties with the most interest-only investor loans (2024):
| County | Interest-only investor loans (2024) |
|---|---|
| Essex County | 450 |
| Camden County | 344 |
| Ocean County | 275 |
| Hudson County | 236 |
| Bergen County | 234 |
| Monmouth County | 215 |
| Mercer County | 211 |
| Union County | 196 |
| Burlington County | 193 |
| Middlesex County | 148 |
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Interest-Only Investor Loans by city in New Jersey
- Absecon
- Allendale
- Asbury Park
- Ashland
- Atlantic City
- Audubon
- Avenel
- Barrington
- Bayonne
- Beachwood
- Bellmawr
- Belmar
- Bergenfield
- Berlin
- Bernardsville
- Bloomingdale
- Bogota
- Boonton
- Bound Brook
- Bradley Gardens
- Bridgeton
- Brigantine
- Brookdale
- Browns Mills
- Budd Lake
- Butler
- Caldwell
- Camden
- Carlstadt
- Carteret
- Cherry Hill Mall
- Clayton
- Cliffside Park
- Clifton
- Closter
- Collingswood
- Colonia
- Cresskill
- Crestwood Village
- Dayton
- Dover
- Dumont
- Dunellen
- East Franklin
- East Orange
- East Rutherford
- Eatontown
- Echelon
- Edgewater
- Elizabeth
- Elmwood Park
- Emerson
- Englewood
- Englewood Cliffs
- Fair Haven
- Fair Lawn
- Fairview
- Fanwood
- Finderne
- Florham Park
- Fords
- Fort Dix
- Fort Lee
- Franklin
- Franklin Center
- Franklin Lakes
- Franklin Park
- Garfield
- Glassboro
- Glen Ridge
- Glen Rock
- Gloucester City
- Green Knoll
- Greentree
- Guttenberg
- Hackensack
- Hackettstown
- Haddon Heights
- Haddonfield
- Haledon
- Hamilton Square
- Hammonton
- Harrison
- Hasbrouck Heights
- Hawthorne
- Heathcote
- Highland Lakes
- Highland Park
- Hightstown
- Hillsdale
- Hoboken
- Holiday City-Berkeley
- Hopatcong
- Iselin
- Jamesburg
- Jersey City
- Keansburg
- Kearny
- Kendall Park
- Kenilworth
- Keyport
- Kingston Estates
- Kinnelon
- Lake Mohawk
- Laurence Harbor
- Leonia
- Lincoln Park
- Lincroft
- Linden
- Lindenwold
- Linwood
- Little Ferry
- Little Silver
- Lodi
- Long Branch
- Madison
- Madison Park
- Manasquan
- Manville
- Margate City
- Marlton
- Martinsville
- Matawan
- Maywood
- McGuire AFB
- Mercerville
- Metuchen
- Middlesex
- Midland Park
- Milltown
- Millville
- Montvale
- Moorestown-Lenola
- Morganville
- Morris Plains
- Morristown
- Mount Arlington
- Mountainside
- Mystic Island
- New Brunswick
- New Milford
- New Providence
- Newark
- Newton
- North Arlington
- North Caldwell
- North Haledon
- North Plainfield
- Northfield
- Norwood
- Oakland
- Ocean Acres
- Ocean City
- Oceanport
- Old Tappan
- Oradell
- Palisades Park
- Palmyra
- Paramus
- Park Ridge
- Passaic
- Paterson
- Paulsboro
- Perth Amboy
- Phillipsburg
- Pine Hill
- Pine Lake Park
- Pitman
- Plainfield
- Pleasantville
- Point Pleasant
- Pomona
- Pompton Lakes
- Princeton
- Princeton Meadows
- Prospect Park
- Rahway
- Ramblewood
- Ramsey
- Ramtown
- Red Bank
- Ridgefield
- Ridgefield Park
- Ridgewood
- Ringwood
- River Edge
- Robertsville
- Roseland
- Roselle
- Roselle Park
- Rumson
- Runnemede
- Rutherford
- Salem
- Sayreville
- Secaucus
- Short Hills
- Smithville
- Somerdale
- Somers Point
- Somerset
- Somerville
- South Amboy
- South Plainfield
- South River
- Spotswood
- Springdale
- Stratford
- Strathmore
- Succasunna
- Summit
- Tenafly
- Tinton Falls
- Totowa
- Trenton
- Twin Rivers
- Union Beach
- Union City
- Upper Montclair
- Upper Saddle River
- Ventnor City
- Villas
- Vineland
- Waldwick
- Wallington
- Wanaque
- Washington
- Watchung
- West Freehold
- West Long Branch
- West New York
- Westfield
- Westwood
- Wharton
- White Horse
- White Meadow Lake
- Williamstown
- Wood-Ridge
- Woodbury
- Woodcliff Lake
- Woodland Park
- Yardville
- Yorketown
Common questions
Is an interest-only loan more expensive?
Over the life of the loan, paying no principal early usually means paying more total interest, because the balance stays higher for longer. Interest-only investor loans may also be priced differently from fully amortizing ones, and DSCR loans in general often cost more than owner-occupied agency loans. Compare the full cost on each Loan Estimate or term sheet, not just the first payment.
What happens to my payment when the interest-only period ends?
The payment increases to include principal, and because principal is repaid over a shorter remaining term, the increase can be significant. If the rate is adjustable, it can also change on its own schedule. Ask for a written payment schedule that shows the payment during and after the interest-only period, and compare both against the rent you collect today.
Should I plan to refinance before the payment resets?
Some investors do, but a refinance depends on future rates, the property's value, your credit and lending rules at that time, and none of those are certain. If you plan to refinance, also check the prepayment penalty terms on the interest-only loan. A safer plan is to make sure the rent and your reserves can carry the full payment even if a refinance is not available.
Other investor loans in New Jersey
DSCR loansDSCR requirementsDSCR down paymentAirbnb / STR loansHard money lendersHard money for a primary homeFix and flip loansInvestor bridge loansPortfolio lendersBlanket mortgagesInvestment property loansHELOC on a rentalInvestor cash-out refiSecond home loansPrivate money lenders
Related guides
- DSCR Loan Pros and Cons
- What Is a DSCR Loan? Meaning, the Ratio, and How It Works
- How to Compare DSCR Lenders and Loan Offers
Interest-Only Investor Loans overview · New Jersey investor loan overview
- 2024 HMDA data