Mortgage Lender Chester NJ

Fixed Rate Mortgage Chester, NJ

It is always very exciting to buy your first home in Chester, NJ. It can also be an anxious time. It is very important to educate and prepare yourself. There are many mortgage products available, how do you know what to choose?

A favorite among many first time buyers is a fixed-rate mortgage because it allows you to budget with certainty. With a fixed-rate mortgage the interest rate is fixed during the whole duration of the loan.

Benefits of a fixed-rate mortgage include:

-Ability to budget with certainty over the life of the loan.

-Knowing the exact loan payment amount each month.

-Rates can vary from lender but are easy to understand.

-Suitable option for people looking to stay in their homes for the duration of their loan.

-30 year fixed rate option to make monthly payments very low.

 

Cons of the fixed-rate mortgage:

-The longer the loan and lower the monthly payment, the longer it will take to pay off the mortgage.

 

Adjustable-Rate Mortgage- ARM Chester, NJ

With adjustable-rate mortgages, the interest paid on the loan periodically adjusts after an initial loan period previously agreed upon.

Benefits of an adjustable-rate mortgage:

-There are caps on how high the interest rate can rise.

-Borrowers enjoy low introductory rates.

-Perfect for buyers who do not plan to stay in their homes for a long period of time.

Cons:

-These loans can be unpredictable because they depend on the market.

Larger Purchases Might Require a Jumbo Home Mortgage in Chester, NJ

Are you interested in high price tags and luxury homes? A jumbo home loan might be for you! A jumbo loan is a mortgage that transcends the compliant loan limits that have been set by the Office of Federal Housing Enterprise Oversight. This loan is not eligible to be guaranteed through Fannie MAe or Freddie Mac because it is so large. The buyers must have outstanding credit, higher incomes, and assets. Jumbo loans usually have higher interest rates. Your monthly mortgage payment is at most 38% of your gross income.

To be eligible for a Jumbo loan:

-You must be in a position that allows you to finance a down payment of at least 20% of the purchase price.

Whether you are looking to buy your first home in Chester, NJ or want a fixed or a variable rate loan, or you have a big deposit or a small one, take the time to decide what kind of home you want/can afford and then finance accordingly.