Mortgage Loan FAQ’s

Ask a TrustLine Mortgage Experts info@trustlinemortgage.com

How do I know how much house I can afford?

  • A – Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

What is the difference between a fixed-rate loan and an adjustable-rate loan?

  • A – With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

Can I pay my loan off early or pay extra each month?

  • A – Yes, you can make principal payments at anytime during your loan term or pay the loan in full. You can also pay a set amount each month above the normal payment due or make lump sum payments periodically. Use our loan calculators to see how fast you can eliminate your debt.

Should I get prequalified for a mortgage before I shop for a home?

  • A – Yes – getting prequalified for your mortgage is an important step before you shop for a home. It tells you how much home you can buy and makes applying for your mortgage easier. After completing your online Mortgage Prequalification Request, you simply follow up by phone with a mortgage loan officer to complete the prequalification process.

How is an index and margin used in an ARM?

  • A – An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Are there any special programs for first-time home buyers?

  • A – Yes. We offer special mortgage programs for individuals who meet certain income requirements, who are financing property in certain low-income areas, or who meet other special requirements.

Such loans offer:

 

  • Lower down payments than most other financing options so you won’t need as much cash to buy a home
  • Down payment or closing cost assistance
  • Option to use gift funds for a portion of your down payment
  • Non-traditional credit requirements
  • Competitive interest rates

How do I know which type of mortgage is best for me?

  • A – There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. TrustLine Mortgage, Inc. can help you evaluate your choices and help you make the most appropriate decision.

What does my mortgage payment include?

  • A – For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case your taxes and your homeowners insurance will be paid by you directly to the County Tax Assessor and property insurance company.

How much cash will I need to purchase a home?

  • A – The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Call us at 904-381-LOAN (5626) or Toll free: 1-888-398-6220
Email us at info@trustlinemortgage.com
NMLS Consumer Access

6101 Gazebo Park Place North, Suite 108
Jacksonville, FL 32257
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