Refinance plan put off until Feb. 8

A key element to shrinking Jersey City's $40 million deficit stalled Wednesday night because a state agency hasn't signed off on the plan, officials said.

The plan, which calls for selling up to $190 million in city bonds as part of debt refinancing, must be approved by the state's Local Finance Board, which monitors the amount of debt municipalities assume.

Although a public hearing was held on the ordinance, City Council members voted to table the matter until the finance board meets on Feb. 8. The next council meeting is scheduled for that evening.

The refinancing would lower this year's $40-million-plus budget deficit by roughly $22 million, city officials have said.

Given the city's current debt payment schedule, the refinance plan would save the city money up to 2014, but cost more money until the bonds mature in 2034.

But the plan would level the amount of money the city has to pay its bond buyers each year, officials said.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.