Cranford Nj Mortgage Lender

Looking to buy a new home in Cranford, NJ?

Whether you’re a first time buyer or have done this before, there are many things to consider when buying a new home.  One of the most important things to consider is the various home loan and mortgage jargon, rates, and terms.  A reputable mortgage lender can make this step very easy for you!  At Millennium Home Mortgage in Cranford, NJ we provide several home mortgage options including adjustable-rate mortgages (ARM), fixed-rate mortgages, and Jumbo home loans.

Fixed Rate Mortgages, a Steady Option

The interest rates may rise, but with this option, yours will not. A fixed rate mortgage loan guarantees that the principal and interest payments will stay the same throughout the life of the loan.  The buyer will never have to argue with varying loan payments that may transcend their budget. If you plan on staying in your new home for a long time, this is the safest and most stable loan to have.

Adjustable Rate Mortgage (ARM)

With this option, your principal and interest payments will stay the same, but only for a period of time. This time period depends on the loan type, but it can last 5, 7, or 10 years. Then, based on the interest rate index, the payment will change. The interest rates fluctuate so you could pay a higher principal payment, or a lower one.

Why take the risk of an ARM?

This option is attractive to many people because the initial interest rate is lower than a fixed mortgage due to the risk of interest rate changes. Although the interest rate may change, there is a limit on how high the interest rate can climb on an ARM loan.  This risk is mostly worth it for buyers who only stay in the home for a short amount of time and whom wish to make payments at a lower initial interest rate.

Jumbo Loans – They Do Exist

For someone looking to buy a larger, luxurious home a Jumbo mortgage may be right for you. This home loan surpasses the conforming loan limits set by Frannie and Freddie Mac. The limit may change from state to state. Recently, this option has become more affordable but still has rigorous guidelines for potential buyers. Jumbo loans can be ARM or Fixed Rate Mortgages. Call us for a quote in Cranfors, NJ.