Skip to main content

How to Make Your First Mortgage Payment


 How to Make Your First Mortgage Payment     

    
https://1609956119.secure-loancenter.com/FreeConsult.aspx
 
     Inside Mortgage Finance News reported on October 28, 2014 ...

      "Total mortgage-related complaints filed by borrowers with the Consumer Financial Protection Bureau fell again in the third quarter of 2014 – the fifth drop in the last six quarters, according to figures compiled by Inside the CFPB.

     Data contained in the CFPB’s consumer complaint database show that such consumer gripes fell 17.6 percent in the third quarter of the year, and are now down 23.6 percent from the same period in 2013."

     It's also been documented via the 2013 CFPB’s Consumer Response Annual Report, that:

     "A full 26% of the complaints received that year surrounded the act of making Mortgage Payments ... i.e., loan servicing, making actual monthly payments, and escrow payments."

     It's great that the number of problems and complaints is finally down ... but why is this portion of the process still so frustrating for so many Borrowers?  How come so many new Mortgage holders don't know how to make their first Mortgage Payment? 

     The explanation is rather simple.  Unlike in the past, where a bank or Lender would handle the servicing of their client's Mortgage and accept the monthly Mortgage and Escrow payments throughout the entire term of the loan ... today's Mortgage servicing and servicing rights are often sold to outside sources, or companies called Mortgage Servicers.

     As a Mortgage Lender, I explain to my clients in detail at the time of their Application and again at their Mortgage Closing:  If the servicing of their Mortgage will be sold or sourced elsewhere, when it will take place, and how it will take place at some period after the Closing of their loan.  I also send my clients a "1st Payment Reminder Letter" that reiterates the detailed instructions I provided them regarding this matter.

     Still, questions sometimes still pop-up regarding this portion of the Mortgage Process ... and obviously they still pop-up for many other new Borrowers across the country.  Issues that are causing stress and frustration.

     So, I thought perhaps establishing a permanent reference point regarding the making of Mortgage Payments to new Mortgage Service providers would be helpful not only for my clients,  but also other new Mortgage holders as well.  

     There's certainly a whole lot to digest during a Mortgage Closing.  Maybe you felt deluged with papers and info. 

     But at the time of Closing you probably were provided a Letter or Notice that contained coupons or instructions for monthly payments.  Certainly that is the case with my company, American Portfolio Mortgage Corp.  There are two (2) coupons enclosed within our client's Closing Package.  

http://www.genemundt.com/ContactUs.aspx     The instructions I provide for those coupons' use include:  

     "Plan on using the coupon for the payments, UNLESS otherwise notified IN WRITING regarding a change in Lender ... or Mortgage Servicer.  In most cases, an actual change in servicing is not done until 45 to 60 AFTER Closing.

     However:  The transfer of servicing may have already been initiated.  So do not panic if your check for your monthly Mortgage Payment is not cashed or processed immediately.

     Should you note that this delay has taken place:  A delay typically means that the new Mortgage Servicer has been forwarded your Mortgage Payment, but not yet cashed or processed it."

     Note:  American Portfolio Mortgage Corp. (the company for which I originate) charges No Late Fee to its clients during this 15-day grace period, if the Mortgage Payment has been sent and received. 

     Moving Forward:  Please follow the Notices of Payments Due, whether the billing comes from your original Lender or an Assignee (the new Mortgage Servicer).  

     And Please Remember:  NO changes can be made to your Interest Rate, Principal Balance, or monthly Mortgage Payment during a change-over to a new Mortgage Servicer.  Only the Escrow Account can be affected by changes in Taxes or Insurance, over the life of your loan.

     I hope the above info alleviates some of the confusion or frustrations surrounding the making of your first Mortgage Payments or working with a new Mortgage Servicer.  

    But should you be in the Chicagoland area and have questions regarding a Mortgage or your loan repayment ... please contact me.  I'm always happy to answer questions or assist you with your Mortgage needs.


http://www.genemundt.com/ContactUs.aspx

      
     *  Hoping to Buy, Build, or Refinance a home in the Chicagoland area?  Contact Me today!  I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
     I can be found easily at:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281


  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.



     

      
    
     

        

     

     

     

Comments

Popular posts from this blog

Property Addresses: Gettin' Down to the Nitty Gritty

Property Addresses:   Gettin' Down to the Nitty Gritty

Take just a second and read through the following statements ...


“The devil is in the details” 
... "in life, it is often the tiny details that end up 
being the most important"

"Get Down To The Nitty Gritty"

“Little details have special talents in 
creating big problems!” 

“Sweat the details”

"Success is the sum of details"

Details ...Details ... it's all about the details ...
     And I'll admit it, I'm a bit of a nerd about them.  My whole family is.  Details, the intricacies, the little things ... they matter to us.
When I was growing up, a typical conversation (and argument) between my brothers and myself at the dinner table or in the backyard centered around "details".  It didn't matter what the topic was, it was the minor differences ... the details about the topic ... that we argued about.  I'm sure we drove our parents crazy.  
Sports statistics and games ... minutiae rega…

Ready for Fall? It's Arriving Soon

Ready for Fall?  It's Arriving Soon

Friend ...

Maybe it's because football season has started. Maybe it's the kids being back in school. Or because the night air is cooler. But a sense of Fall has arrived here in Chicagoland ...

The Fall Season brings changes with it. Changes in temperatures. Changes to the clothing we wear. Our focus seems to shift with the coming of shorter days, falling leaves, and crisp air.

Fall can be the perfect time to do a multitude of things. You can prep your home for the upcoming winter weather ... or for Fall listing and sale. 

But whether you're moving on or staying put, Fall is a great time to declutter and organize your home inside and out ... and your finances too.

I've googled like crazy to find interesting articles filled with Fall info, ideas, tips, and photos. Articles that will help you usher the Fall Season in at your house. I hope you enjoy reading the articles offered below and that they inspire you to make any needed changes.

Rem…

Paper or Paperless billing? Which serves YOUR needs best?

Paper or Paperless billing?  Which serves YOUR needs best?


These days, companies are under pressure to go "green" and become more environmentally friendly.  As a result, an increasing number of businesses are offering their customers a paperless option with which to receive and pay their bills. 

There are obviously many positives to be found within these paperless services:


Trees are saved  Reduced postage costs  Less paper documentation to organize or save/storePossible rewards for switching to paperlessPayments can often be made/posted same-dayAutomated payments can be set-upMore
But I can tell you from my vantage point as a Chicagoland/IL/WI Mortgage Originator, there are also negatives to be found within paperless methods.  For some of my mortgage clients, the choice of going "paperless" just hasn't worked well.

 For some, an email or text reminder regarding payment of bills has not been enough. They NEED a paper billing to arrive in their mail. 

Their paper bil…