Of your loan amount closing costs generally range from 2% to 3%. Closing costs can be divided into three categories:

• Lender fees. Fees may include origination, application, points, credit report, and appraisal.
• Third-party fees. These fees vary by state and the company you select to close your loan in. They can include fees for closing, title insurance, title exam, and recording.
• Pre-paid items. These are items collected at closing but are not really considered costs (for example, taxes, interest, and hazard insurance).

You'll be given an estimate of your closing costs soon after your application has been received. These estimates will change if you change loan amount or the product type. If this occurs, be sure to ask how the changes will impact your closing costs.

Usually, the amount of mortgage you qualify for depends on three factors:

• Your monthly payments as a percentage of your income.
• The amount of cash you have for the down payment and closing costs.
• Your past credit history.

• Fixed-rate mortgage. You pay the same monthly payment and interest rate of principal and interest for the span of the mortgage. The most customary terms are 15, 20 and 30 years. Fixed-rate mortgages are most desirable if you plan on being in your home for a while.
• Adjustable-rate mortgage (ARM). The interest rate stays the same for an initial interest rate period, which lasts from 1 to 7 years. Then the rate will adjust higher or lower annually for the life of the loan based on a specific index. An ARM is a good option if you believe interest rates will become lower over the next few years or if you plan on living in your home 5 to 7 years or less.
• Combination loan. A loan where you receive a first mortgage combined with a second mortgage at the same time. This choice may help you avoid the costs of a private mortgage insurance (PMI) and/or the higher rate of a jumbo loan with as low as 10% down. The most used combinations are 80-10-10 (80% first, 10% second, 10%down), 75-15-10 (75% first, 15% second, 10% down).

A 15-year mortgage gives you the opportunity to own your home in half the time of a typical mortgage with a 30-year term. Although payments are higher with a 15-year mortgage, you will save thousands of dollars in interest and build equity at a faster pace.

There are special mortgage programs for individuals who meet specific income requirements, who are financing property in certain census tracts, or who fit other special requirements.

• Lower down payments than other financing options so you will not need as much cash to buy a home.
• Interest rates which are competitive.
• Manageable payments for all budgets.
• Lower closing costs and mortgage loan fees.

• Income tax reduction. During the first few years of a mortgage, most of your monthly payment covers interest on the mortgage. In most instances, your mortgage interest and property tax are deductible from your taxable income, lowering your overall tax bill Therefore, your after-tax cost of owning a home may become lower than renting. If you later sell the home at a profit there may be tax implications. See your tax advisor for more information.
• Tax deductible borrowing power. As your home equity increases, you may borrow against it for most needs with a home equity loan or line of credit. Because your home equity loan or line of credit is backed by the equity in your home, you may have the ability to deduct that interest from your taxable income. This could lower your final tax bill. Consult a tax professional for complete details.

Pre-qualifying for your mortgage is an important step prior to shopping for a home. It tells you the amount of home you can buy and makes applying for your mortgage easier. A mortgage prequalification may also benefit you with a seller in negotiating the best possible terms of the sale.

You can get a response in minutes when you pre-qualify for a mortgage. There are only a few easy steps to take in the prequalification process.

You have to complete a full mortgage application if you want to lock in a rate. After you submit a prequalification online, a TRUMP Mortgage, LLC loan specialist will call you to discuss your mortgage options. They will also help you complete the application and lock in a rate when you’re ready.

In addition to the principal and interest payment on your mortgage loan, you may choose to impound additional funds each month into an escrow account to pay for property taxes and insurance. Impounding for taxes and insurance may be required with some mortgage programs.

With an escrow account you can put aside a small portion each month toward the costs of insurance and property taxes. You send the additional funds each month when you make your mortgage payment. Your lender holds the money in an escrow account, and when the payments are due, they make the payment for you.

Yes. As long as the property you are purchasing or refinancing is in the United States.