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 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 a 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 the mortgagor. $5.00