More money down
The largest loans need the most equity: the larger the loan, the larger the down payment programs ask for. A loan officer can compare programs for your price range.
Jumbo loans
Millburn Township, Essex County
Interest-only and larger jumbo loans in Millburn and Short Hills, NJ
For Millburn Township and Short Hills buyers whose loan will be well above the conforming limit: how an interest-only period works, which payment a lender measures you on, and what larger jumbo loans ask for. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
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Fidelity Residential · NMLS #103098 · Equal Housing Lender
Millburn Township housing
Higher values, larger houses, long trips to work
Millburn Township, which includes Short Hills, has about 22,100 residents and about 7,400 homes, according to the Census Bureau’s American Community Survey estimates for 2020 to 2024. Owners occupy an estimated 81.3 percent of the homes that are lived in.
The Census Bureau puts the median value of owner-occupied homes in the township at about $1,371,500. Of about 5,800 owner-occupied homes, an estimated 77.3 percent are valued at $1,000,000 or more.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Millburn Township, and we lend across New Jersey.
The homes and the commute
- Larger houses: an estimated 29.9 percent of homes have five bedrooms or more, and 45.3 percent nine rooms or more
- Before 1940: an estimated 33.4 percent of homes were built in 1939 or earlier
- Mortgages: an estimated 63.8 percent of owner-occupied homes, about 3,700, have one
- Getting to work: the average trip takes an estimated 41.9 minutes, and 22.1 percent of workers take public transportation
- Working outside New Jersey: about 2,600 of some 10,600 workers, roughly one in four
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Interest-only
How an interest-only period works
Some jumbo programs offer an interest-only period at the start of the loan. While it lasts, the payment covers interest and nothing else, so the balance does not go down.
When the period ends. The whole balance then has to be repaid over the time that is left, a shorter stretch than the full term, so the payment rises, and it can rise a lot. Plan your budget on that later payment, not on the opening one.
The payment you are measured on. On a loan documented by your income, underwriting usually tests you against the payment that starts after the interest-only period, not the lighter opening payment. The bar is set by the later figure.
With an adjustable rate. On an adjustable-rate version, lenders commonly test the payment at the higher of the starting rate and the rate the index plus the margin would give. A rate change after the fixed period can then move the payment again.
The length of the loan. With the same interest-only period, a longer overall term leaves more months to repay the balance and softens the step up, but interest runs for longer, so the total interest is higher.
Is it for you?
When an interest-only period earns its place
A lighter payment for some years can help cash flow, but it does not lower the bar the way most people expect. It earns its place when that lighter payment genuinely changes what you can do, such as holding more savings or paying for work on the house.
If a standard jumbo loan fits comfortably and you do not need the lower opening payment, it is often the cleaner and less costly choice. Ask to see the two side by side before you decide.
What to ask for
- The full structure: the overall term, the length of the interest-only period, and whether the rate is fixed or adjustable
- The later payment: the payment after the interest-only period ends, set beside the opening one
- Two terms: the same loan with a longer and a shorter overall term
- Your savings: statements for the savings and investments you will rely on, since a higher underwriting payment usually means more is expected
Questions about deducting the interest belong with your CPA or tax adviser.
Larger loans
What larger jumbo loans ask for
A jumbo loan is larger than the conforming limit set each year for the county, so each program writes its own rules, and those rules tighten as the loan grows.
Savings you keep
Programs count the savings left after closing in months of payments, and ask for more as the loan grows. With no agency behind the loan, they want to see you could keep paying through a rough patch.
Two appraisals
Larger loans often need two appraisals from different appraisers, and jumbo loans do not use appraisal waivers. Share your contract dates early so both can be planned.
Income is usually documented in full: pay stubs and W-2s for employees, personal and business tax returns for the self-employed. Where tax returns understate what you earn, ask about alternative documentation loans.
Questions
Questions from Millburn and Short Hills buyers
Do you lend in Millburn and Short Hills?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
Do you have an office in Millburn or Short Hills?
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County, and we lend across New Jersey. Call 732-686-9999 to talk with a licensed loan officer.
Which payment is an interest-only loan underwritten on?
On a loan documented by your income, usually the payment that begins after the interest-only period ends. It repays the whole balance over the time left, so it is higher than the opening payment.
Why does the payment rise when the interest-only period ends?
During the period the payment covers interest alone and the balance stays where it is. Afterwards the balance is repaid over fewer months than the full term, so each payment is larger.
Is an interest-only loan the cheaper choice?
Not usually. Paying interest alone at first leaves the balance untouched, and if a standard loan fits comfortably it is often the cleaner and less costly choice. Interest-only suits a plan in which a lighter payment for some years really matters.
How many appraisals will a larger jumbo loan need?
One, or two from different appraisers on larger loans. Jumbo loans do not use appraisal waivers.
Talk with a loan officer near you
Get a quote online, or call us and talk it through with a licensed loan officer.
What happens next
- Tell us about your loan. A few quick questions about the property and the loan you want. No credit check to start and no obligation.
- A licensed loan officer reviews your answers and follows up with you, usually within one business day.
- This is a request for a quote, not a loan application and not a commitment to lend.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.