Monmouth County Mortgage Companies

Manasquan Savings Bank
Counties covered: Monmouth county and surrounding areas.
Address: 185 Main Street Manasquan, NJ 
Phone: 732-223-2882

First Lenders Mortgage
Counties covered: Monmouth county.
Address: 6 Leonardville Road - Middletown, NJ 07748
Phone: 800-280-2777

First Interstate Financial Corp.
Counties covered: Monmouth county and surrounding areas.
Address: 39 Avenue at the Commons Shrewsbury, NJ 07702
Phone: 732-389-9898

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Monmouth County Mortgage Lenders

One of the most important decisions a homeowner will have to make when deciding to to get a mortgage in Monmouth County, New Jersey is whether they want a fixed mortgage, an adjustable rate mortgage (ARM) or a hybrid loan which combines the two options.

The names are pretty much self explanatory but basically a fixed rate mortgage is a mortgage where the interest rate remains constant and an ARM is a mortgage where the interest rate varies.

The amount the interest rate varies is usually tied to an index such as the prime index. Additionally there are usually clauses which prevent the interest rate from rising or dropping dramatically during a specific period of time.

This safety clause provides protection for both the homeowner and the Monmouth County mortgage lender.

Advantages of Getting a Fixed Rate Mortgage in Monmouth County, NJ

A fixed rate mortgage is ideal for homeowners who plan on staying in their home for longer than 7 years.  They are also for people with good credit who are able to lock in a favorable interest rate.

The major advantage to this type of mortgage is stability. Homeowners with a fixed mortgage rate do not have to be concerned about how their payments may vary during the course of the loan period.

Disadvantages of a Fixed Option

Although the ability to lock in a favorable interest rate is an advantage it can also be considered a disadvantage. This is because homeowners who re-finance to obtain a favorable interest rate will not be able to take advantage of subsequent interest rate drops unless they re-finance again in the future. This will result in the homeowner incurring additional closing costs when they refinance again.

Advantages of an ARM Mortgage

An ARM mortgage is favorable in situations where the interest rate is expected to drop in the near future. Homeowners who are skilled at predicting trends in the economy and interest rates may consider an ARM if they expect the rates to drop during the course of the loan period.

However, interest rates are tied to a number of different factors and may rise unexpectedly at any time despite the predictions by industry experts.

A homeowner who can predict the future would be able to determine whether or not an ARM is the best re-financing option. However, since this is not possible homeowners have to either rely on their instincts and hope for the best or select a less risky option such as a fixed interest rate.

Disadvantages of an ARM Option

The most obvious disadvantage to getting an ARM mortgage in Monmouth County, NJ is that the interest rate may rise significantly and unexpectedly.

In these situations the homeowner may suddenly find themselves paying significantly more each month to compensate for the higher interest rates. While this is a disadvantage, there are some elements of protection for both the homeowner and the lender.

This often comes in the form of a clause in the terms of the contract which prevents the interest rate from being raised or lowered by a certain percentage over a specific period of time.

When looking for a Monmouth County mortgage lender, always shop around.

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