Main Office:
Two River Mortgage
157 Broad Street
Suite 312
Red Bank, NJ 07701 Tel: 732.345.5000
Fax: 732.345.5049

The lenders we associate with are chosen for a number of factors. The primary factors being; Interest Rates, mortgage programs flexibility and the lender fees. Interest Rates in general are a factor of the mortgage program sought by the borrower. A high Loan To Value (LTV) Jumbo Fixed Rate Mortgage will have a higher interest rate than a low Loan To Value (LTV) conforming loan.

Often two lenders could have quite different interest rates for essentially the same program. One of these lenders might prefer to buy fixed rate conforming mortgages, while the other might prefer adjustable rate jumbo mortgages.

"Points" are used to "buy down the interest rate". This is a simple concept that we have seen abused without the knowledge of the borrower. The borrower must educate themselves about all aspects to the lending process. Many states and lenders have regulations in effect to limit the abuses. "Points" are more advantageous on a purchase than a refinance because of the tax implications. (Consult your tax advisor for details).

Paying "Points" on a refinance can be expensive in the short term. It generally takes 58 months to recoup the cost of paying points. The borrower must ask themselves if the money used to pay the "Points" could be better utilized. To calculate the time savings on your loan you need to calculate your monthly payments for the two interest rates, with and without points, then divided the difference of the two payments into the dollar cost of the points. If it is going to take you 61 months to recoup your points and your intention is to sell the property in 3 years you would be loosing money. (Consult your tax advisor or you're CFP)

Nothing is free. All lenders have fees, one way or the other you are going to pay for something. The lenders fees need to be in line with the industry averages. Points are only used to "buy the rate down" or to meet program guideline costs. The bulk of our lenders buy & sell on volume. These lenders have discounted access to the large pool of mortgage funds available to all lenders.