Taking Care of Your Mortgage

  • January 08, 2015

Getting the right mortgage for you is a major milestone in your financial success. Well done! Now it’s time to manage your new financial obligation wisely. Here are a few pointers that will help you do just that.
·  Make sure you have the loan payment address: You should have received this address when you closed on your loan. You may have received your first payment coupon at the closing table. Whether you did or not, you’re still responsible for making your payments on time. If you don’t have the address, contact your loan servicer for all the payment details for your new mortgage.
·  Watch your mail for a notification that your loan servicer has changed:  It’s very common practice for your new mortgage to be sold shortly after loan closing. If this happens, you’ll receive a letter from your original mortgage lender with all the details, including where to mail your monthly payments going forward.
·  Be on the lookout for tax and insurance bills: If you have an escrow account, your loan servicer will be collecting your property tax and homeowner’s insurance payments each month (both are part of your monthly mortgage payment). The mortgage servicer is then responsible for making your property tax and homeowner’s insurance payments on time so you don’t have to think about it. However, it’s possible that you may receive a tax or insurance bill yourself. If you do, simply forward it to your mortgage servicer.
·  Be prepared for rising property tax and/or homeowner’s insurance premiums: If either one increases, that will also raise your monthly mortgage payment, because your servicer will need to collect a greater amount each month to cover the tax or insurance bill when it’s due. You’ll receive a year-end statement from your servicer, which will detail the total amounts collected and paid. You’ll want to give this statement to your tax preparer, so you can take any deductions that you’re eligible for (ask your tax adviser for details).
·  Make your payments on time: Maintaining a healthy credit history is key if you want to obtain a home equity loan or credit line down the road – or for that matter, a new mortgage. So it’s important to make every mortgage payment by its due date. It’s so vital to your credit score that you’ll always want to budget for and pay your mortgage first, before any other debt obligations.
·  If you get behind in your payments, contact your servicer right away: If you have a financial hardship, such as losing a job or major medical bills, let your servicer know so that you can both plan on how to get your monthly payments back on track.

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© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1820).