Frequently Asked Questions
When is my payment due and when is it considered late?
Payments are due on the first day of each month. Allowing for a 15-day
grace period for mailing, the late fee is charged if we receive payment
after 5:00 p.m. on the 16th of the month. Accounts are reported to the
credit bureaus as delinquent if payment is not received by 3:00 p.m. on
the 30th. If the 30th falls on a weekend, the payment must be
received by the last business day of the month prior to the 30th.
If I have
a fixed interest rate, why does my monthly payment change each year?
Although the principal and interest portion of your payment is fixed,
taxes and insurance are also paid with funds accumulated from the
payment. Those premiums change each year and the changes are
reflected in a payment adjustment through escrow analysis.
How do I find out how much equity I have in my home?
Your equity is the difference between what is owed on the home and what
the home is worth. You can obtain current market values from your county
tax office, a real estate agent, an appraiser or a comparable property sale in
your area.
I’ve been married/divorced recently. How do I
change the name on my loan for mailing purposes?
Sending us
a copy of the document supporting a name change (marriage certificate,
divorce decree, Quit Claim Deed) will allow us to change how your name
appears on your account. This does not change the legal ownership of
your property.
I’ve been married/divorced recently and
need to add/remove a spouse from the loan. How do I do
that?
We cannot add a spouse to a loan, but you can share
interest on the property with a spouse by executing a deed. Contact an
attorney for legal advice on property transfers.
In a divorce
situation, removing an ex-spouse from having interest and liability on a
mortgage can only be done through refinancing your loan, or a release of
liability (depending on loan type). Contact NDHFA for more information.
What’s the difference between the principal balance and the
payoff on my loan?
The principal balance is the amount
remaining on the original loan. The payoff amount includes the principal
balance, daily interest since the last payment, less funds in escrow. In
most cases when completing a loan application or credit information, the
principal balance will work. If your loan is actually paying off, the
title company handling the closing will contact us for a payoff
statement.
What do I need to know about my insurance?
It is very important to understand different types of insurance. For
example, Private Mortgage Insurance is not the same as credit life
insurance, and does not offer the same type of coverage in the event of
a death. And, hazard insurance is required when you have a loan and it
is recommended that you continue coverage once your loan is paid off. To
learn more about insurance, read
"Understanding Insurance", visit with
your insurance agent, or view the consumer section of the North Dakota
Insurance Department website,
www.nd.gov/ndins.
What happens to my escrow account
at payoff?
The refund of your escrow account is calculated
in your payoff statement.
Can I pay my own taxes and
insurances?
No, your escrow account is mandatory.
Does NDHFA offer refinancing?
NDHFA does not
offer any options for our borrowers to refinance their mortgage loan. If
you are interested in refinancing, we recommend that you visit with the
lender that originated your mortgage loan or another NDHFA participating
lender.
Before refinancing, note that there are fees associated
with the closing of a new loan. Be sure to consider how long it will
take you to you to recoup those costs with the savings of your new loan
amount.
Example: if your current mortgage payment is $800 per
month and the new payment after the refinance is $700 per month, you
would save $100 per month. If the closing costs to refinance are $3,000,
at a saving of $100 per month it would take you 30 months to recoup the
cost. If you were planning to sell your home in less than that time, the
cost of refinancing would exceed the savings. If you planned to live in
the home longer, refinancing could save you money.
What are service fees?
The service fee schedule is as follows.
Recurring automatic monthly payment after the 10th of each month. $2.00
Online one-time payment made from the 6th to the 16th of the month. $5.00
Processing or reprocessing a mortgagor's NSF check. $15.00
Providing a copy of the mortgage or Deed of Trust, if the copy is a duplicate of what has already been provided to the mortgagor. $5.00
Providing replacement coupon book. $5.00
Providing a copy of the Mortgage Note, if the copy is a duplicate of what has already been provided to the mortgagor. $5.00
Providing a copy of the settlement statement, gift letters and other documents, other than those provided at closing. $5.00
Providing a new amortization schedule, other than the schedule provided at closing. $5.00
Providing a payment history to the mortgagor, other than the current year and one year prior. $5.00
Providing duplicate year-end statements $5.00
Providing payoff statement by facsimile, upon request of mortgagor. $5.00