Understand Your Payment
There is a good chance you’ll be paying your mortgage payment online. However, it’s a good idea to understand your mortgage statement. If you have a 30-year fixed payment loan, there shouldn’t be any real changes but it is smart to review them.
Your statement will come with a summary, which typically is comprised of:
- Payment: Broken down by principal, interest, taxes and insurance.
- Late charges: Hopefully this always shows $0.
- Due date of your next payment
There will be a few other sections – your job is to make sure everything is accurate. What happens if you find an error? Most can be resolved over the phone. Call customer support and have your account number handy. IT IS SMART TO REQUEST ANY CORRECTIONS IN WRITING SO YOU HAVE IT FOR YOUR RECORDS.
Tips On Making Payments
1.Pay the full amount on time. Partial payments won’t be credited to your account.
2. If you think you will miss a payment, contact the servicing company ASAP. They have options to help you out. Try not to let any payment go past 30 days late. The 60-day mark and your credit score will start taking massive hits. Work out issues in advance –you may be surprised how much they will help you getting back on track!
SOMETHING TO CONSIDER: Many clients benefit by paying ½ of their mortgage payment on the 1st of the month and the other half on the 15th. You pay the same monthly but over the course of a year, you end up making 1 extra payment. This alone can reduce a 30-year to 22-years pretty fast. Consult with a professional if you want to go this route.