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We are a 
Consumer
Service!
Payment Options
Can I
pay the loan in advance, either monthly or in full?
It will depend on what type of loan you have. Most lenders will let you pay off
the entire loan or make additional payments any time without penalty. However,
partial prepayments will not change your current monthly payments, but could
save interest over the life of the loan.
What
will happen if I pay extra on my mortgage each month?
Most loans are set up so that additional monthly payments will be applied to
reduce your principal balance. If your loan has a prepayment penalty, you will
be assessed with an extra charge when you pay extra on your mortgage payment.
What is
amortization?
Amortization is the liquidation of a debt by regular installments (usually
monthly) of principal and interest. An amortization schedule is a table showing
the payment, interest, principal and unpaid balance.
What is
an escrow or impound account?
When borrowers make their monthly mortgage payments, they may also make a
payment to the lender toward the anticipated annual amount needed to pay taxes
and insurance premiums. These funds are placed in an escrow account (also known
as Impound account) until the lender pays the taxes and insurance as they become
due.
What
does my mortgage payment include?
Most payments include three portions:
- Principal: a payment to the amount borrowed.
- Interest: a payment on the interest.
- Escrow: a payment to the escrow account, which handles items such
as hazard insurance, taxes and private mortgage insurance.
What
is PITI?
PITI is an abbreviation for principal, interest, taxes and insurance.
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