Loan Options

  • Thirty-Year Fixed Rate Mortgage
    The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments for principal and interest that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
  • Fifteen-Year Fixed Rate Mortgage
    This loan is fully amortized over a 15-year period and features constant monthly payments for principal and interest. It offers most of the advantages of the 30-year loan — and you’ll pay off your loan twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.
  • Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
    These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed principal and interest payment for a longer period of time than most adjustable rate loan. For example, a “5/1 loan” has a fixed interest rate and a fixed monthly payment for principal and interest for the first five years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
  • Adjustable Rate Mortgages (ARM)
    When it comes to ARMs there’s a basic rule to remember…the longer you ask the lender to keep your interest rate fixed, the more expensive the loan.
  • 2/1 Buy Down Mortgage
    The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
  • Annual ARM
    This loan has a rate that is recalculated once a year.
  • Monthly ARM
    With this loan, the interest rate is recalculated every month. Compared to other options, the rate on this ARM is usually lower because the lender is only committing to a rate for a month at a time, so its interest rate risk is significantly reduced.

©2020 1st 2nd Mortgage Company of N.J., Inc.
Licensed by the NJ Department of Banking & Insurance and other states NMLS# 115981 / NMLS# 115981 as a residential mortgage lender.
We are located at: 50 Spring Street, Cresskill, NJ 07626
Toll Free: (800) 562-6466

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