Mastering Your Monthly Mortgage Payments

From the moment you initiate your application for a home loan to the final signature on your closing documents, a team of professionals, including your lender, real estate agent, and various other experts, will accompany you throughout the process. Upon settling into your new home, the question of "What's next?" may emerge. The answer lies in adeptly managing your mortgage payments.

Understanding Your Monthly Statement

You will receive a monthly statement detailing all the necessary information to manage your mortgage payment. Your statement will provide:

• Contact details for your mortgage servicer
• The amount due and the respective due date
• The prevailing interest rate
• Fees and other charges

It is essential to examine your statement meticulously every month, even if the owed amount remains unchanged. It may contain crucial information regarding impending changes or fees. Depending on your lender, such as CrossCountry Mortgage, you might have the option of automatic payments. Although some lenders offer loan coupon books to facilitate timely and accurate payments, these are often considered a helpful tool rather than a strict requirement. Should you decide not to utilize this coupon book, it would be prudent to inform your lender as a preventative measure.

Understanding Changes in Your Mortgage

Several factors can cause your mortgage to fluctuate. Before contacting your servicer for clarification or to report an anomaly, contemplate the following: Did your taxes or insurance premiums increase? If so, the escrow collected in advance by your lender might not suffice to cover these increases, creating a "shortage." You would be responsible for covering the difference, but only after receiving a formal notice from your bank. Has the Private Mortgage Insurance (PMI) ceased? With conventional loans, unlike FHA and USDA* loans which usually necessitate MI throughout the loan's lifespan, PMI can be cancelled when your loan balance hits 78% of your home's original value. Has your servicer changed? It is not uncommon for large residential mortgages to be transferred between major institutions. Consequently, your regular payment might need to be rerouted to a different company and/or address. If your mortgage payment has spiked without any other evident changes, your new servicer might be implementing new or differing fees. Your monthly mortgage statement will contain this information. Did the interest rate on your Adjustable-Rate Mortgage (ARM) change? ARMs have a fixed rate for a predetermined period, after which they can increase or decrease based on the market conditions.

Disputing an Error on Your Mortgage

Legally, you are allowed to contest errors such as misapplied or miscredited payments, unreasonable fees, or wrongful initiation of foreclosure sales. To report a suspected error, you can initiate a call with your servicer using the contact details provided in your monthly mortgage statement. However, it is advisable to document all correspondence in writing, as suggested by the Consumer Financial Protection Bureau. This may require sending a letter to your mortgage servicer detailing the suspected errors. This letter should include:

• Your full legal name
• Home address
• Mortgage account number
• The suspected error or incorrect information on your most recent payment

Keep in mind that your servicer may use a different mailing address for error reports or information requests. You can locate more contact information online or in your mortgage statement. Upon receipt, your servicer must acknowledge your query within five business days, but the response time to rectify the error varies based on the situation. They typically provide an answer or request additional information within 30 business days. In some instances, they might need an extra 15 days for further investigation. During this period, continue with your mortgage payments as usual.

For further assistance, do not hesitate to reach out. A licensed Mortgage Advisor in your area is always ready to help.

*Certain state and county maximum loan amount restrictions may apply.