The acronym PITIMI represents the components of the monthly mortgage payment. It is defined as follows: • P = Principal • I = Interest • T = Real estate taxes • I = Insurance • MI = Mortgage Insurance The principal is the amount paid against the borrowed funds per month. Interest is the amount paid to the lender. Taxes and insurance are collected monthly by the lender into an escrow account. The lender pays these amounts as they become due. Mortgage insurance is paid monthly until there is at least 20% equity in the home, at which time...
Category: Mortgage Payment
SHOCK ELIMINATION
A homeowner should read their monthly mortgage statement, and make their payments on time. The statement will provide information to keep you up-to-date on the payment schedule and amount; eliminate being shocked or awed. Isn’t the payment amount the same monthly? No, not necessarily. Why do monthly mortgage payments change? It could be the loan type, mortgage insurance premiums, homeowners insurance premiums, real estate taxes, or a simple billing mistake made by the servicer. If you notice strange discrepancies or errors you should contact your mortgage servicer and send an information request letter. Contact us at...
December 15, 2020December 16, 2020john
WHAT SHOULD YOU DO IF YOUR MORTGAGE STATEMENT IS INCORRECT?
If you see a discrepancy on your statement you need to contact the loan servicer. You can call them over the phone but it is a best practice to write a formal letter regarding disputed charges. Remember to use the address the server requests be used for written communications. Otherwise a response may be delayed. Here is an article outlining important steps to follow when disputing an error with your servicer:
October 25, 2020October 28, 2020john
MORTGAGE, REFINANCING AND SKIPPING PAYMENTS
You may have heard about skipping a payment, or maybe even 2 months payments, when you refinance? Is skipping a payment tricking the system, or getting away with something? No, in fact, you may be front-loading more cash at closing.
June 13, 2020June 14, 2020john