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Life as a Homeowner






 
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Module 5
Life as a Homeowner
Your Obligations as an Owner
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Different Ways to Pay

Variety of Payment OptionsMost lenders will offer a variety of ways to make your home loan payment:

  • Automatic deduction: One of the easiest methods is to set up an automatic deduction from your checking or savings account. There are a number of advantages to this approach: it’s simple ... you’ll never forget to make a payment … and you won’t have to worry about your payments being late.

  • Paying online: Some lenders also offer you the option to make your payments on a secure Web site. Payments can usually be scheduled in advance and can be made from your checking or savings account.

  • Mailing payments: Of course, you can still pay your bill the more traditional way, by receiving your monthly statement in the mail and sending in a payment each month.

  • Payment at your local branch: Some lenders may allow you to bring your payment to their local branches.
Avoid Late Payments
Whichever method you choose, the most important thing is for the lender to receive your payment by the due date. Many lenders require that payments be made on or before a specific date and time. The day you send or bring in your payment may not be the same day the money is applied to your account. To be sure that your payment is timely applied by the due date and time, make sure your payment is received by your lender at least one business day before the due date so that it will be applied to your account on time. If your payment arrives late, you’ll be charged a late fee, which can add up to hefty charges over time. Lender policies differ, but your lender may report receiving late payments to the credit-reporting agencies, so making late payments could adversely affect your credit rating. Be sure to pay on time.

Make Payments Early
To avoid late payment penalties, you may also consider making payments early — there are no penalties for early loan payments. Some people also like to make extra payments in order to pay down their loan more quickly. This allows them to save on future interest charges and to build up their equity faster. Consult your financial or tax advisor to determine if this is a good strategy for you.

Always Check Your Loan Documents edge

Always check your loans documents and monthly mortgage statements for errors and omissions. Confirm that the contact information such as names, addresses, telephone numbers and email addresses are correct. Check your monthly statements for accuracy, and if there are errors or discrepancies you don’t understand, talk to your lenders’ customer service department to resolve the issue.


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