May 28, 2024
Do you know what to expect after your FHA mortgage closes? Borrowers should know a few common things about what to expect after closing day, such what to expect from payments and mortgage statements.
What To Know About FHA Loan Mortgage Statements
Not all home loans have the same terms and conditions, so be sure to review your contract carefully to learn how your statement will be delivered each month or if the loan stipulates you have a payment book to rely on instead.
Assuming your mortgage payment notification automatically comes to you electronically or by U.S. Mail is not safe–make a point to learn what your contract says.
Do you need an alternative option? Ask early.
Your mortgage statement should have information about what you owe. This includes any fees or charges, due date, and interest rate.
Your statement may also contain information about problems like late fees or other situational issues. If you missed a payment, this information should appear on future statements.
If there was a mistake in processing your payment, some may get their earliest warning from a notification on a paper statement or e-statement.
FHA Single Family Home Loan Mortgage Payment Books
Some home loans include a payment book. For some borrowers, this book may replace the monthly mailed statement. Much depends on your lender, state law, and other variables.
The Consumer Financial Protection Bureau, also known as the CFPB, says on its official site that not all home loans include a payment book. If you have a preferred method of notification, ask if that option is available to you.
Payment books may not include as much information as what’s listed in a monthly mortgage statement some receive by mail from the lender. No matter which option you use, mortgage payments must be made before the date listed.
Some of the best advice for paying your mortgage? Use an automatic payment system no matter what kind of notification you receive about your monthly mortgage. The automatic payment option avoids late payments and the fees they can rack up along the way.
The FHA Loan Monthly Mortgage Payment
Typically, home loan principal and interest payments are the main portions of your monthly mortgage payment but they aren’t the only expenses to plan for.
Your mortgage budget will include other monthly costs, such as the FHA mortgage insurance premium and any applicable homeowner association dues.
You may also have to save funds for annual property taxes, and this is a process that may require escrow. Ask a participating FHA loan officer to help you if you are not sure what the lender’s policies are for this recurring expense.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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