Manage Your Home Loan
The closing papers are signed and you’re all moved in, but what happens if you need help with a mortgage question after the dust has settled? The Mortgage Servicing Team at Royal Credit Union is here for you! From escrow and private mortgage insurance (PMI) questions to payment help and insurance claims, the Mortgage Servicing Team takes care of buyers throughout the life of their loan.
You have lots of ways to make mortgage payments. You can set up automatic payments as part of the closing process, or configure them later from online banking or our mobile app. We can also set up automatic payments for you. Or you can make your payment each month by mail, phone or online.
If you have Royal set up an automatic recurring payment outside of online banking or Bill Pay, this scheduled payment will not show up in online banking.
Please continue to make payments on your existing loans if you are refinancing. Failing to make your monthly payments may impact your credit report and your ability to qualify for the refinance loan.
Our payment system doesn't support bi-weekly payments. An easy way to achieve a similar outcome is to pay a little extra each month. If you divide your payment by 12 and add the result to your regular monthly payment, the effect will be similar to paying bi-weekly. There is no penalty for paying ahead.
We are required to send you payment coupons. If you are already making your payments via other methods, you do not need to do anything with the coupons.
Homeowners Insurance Questions
Yes, it is a requirement of your loan that your home is covered by homeowners insurance. You can obtain homeowners insurance through the agent of your choice. You will need to provide proof of insurance before closing your loan. If you don’t maintain continuous homeowners insurance coverage, we are required to obtain insurance for you at your cost.
If a flood plain determination concludes that your property is in a flood plain, flood insurance is required. You are also required to escrow for flood insurance. Similar to homeowners insurance, if you don’t maintain continuous flood insurance, we are required to obtain it for you at your cost.
You will need to call, email, or fax your new homeowners insurance declarations page to our Mortgage Servicing Department. You can also drop it off in person at your local Royal loan office.
Private Mortgage Insurance (PMI) Questions
If your loan-to-value ratio is greater than 80%, private mortgage insurance (PMI) is required. Royal will order PMI for you before your loan closes and collect the monthly premium into your escrow account.
Different types of loans and different loan programs have different guidelines for when we can remove private mortgage insurance from your loan. We automatically remove private mortgage insurance for some types of loans if certain conditions are met. Typically PMI is automatically removed when your loan-to-value ratio reaches 78% or less and you've made your payments on time. Please contact us if you have questions about canceling early, for example if you've made significant property improvements that may affect your loan-to-value ratio.
We are required to provide all Members with an annual notice explaining what your loan-to-value ratio is and what your options are regarding private mortgage insurance. This notice will provide information about when you may be eligible to drop PMI and how to request to drop PMI.
Other Home Loan Questions
Most home mortgages can be re-amortized (or recast) for no extra fee by making a payment of $10,000 or more to the principal. Re-amortization is the process of recalculating your payment based on the new lower loan balance. The result is a lower monthly payment and long-term interest savings. Be sure to let us know in advance if you’re planning to make a large payment so we can re-amortize your loan!
You will receive a 1098 tax form at the beginning of the year. This form is a Mortgage Interest Statement that explains how much mortgage interest you paid in the previous year. If you are enrolled in online banking, this form can be accessed there. If you are not enrolled in online banking, you will receive this form by mail.
An assessment is the value placed on a property by the local assessor used to determine the property tax amount. An appraisal is a written statement independently and impartially prepared by a qualified appraiser giving an opinion on the market value of a property on a specific date, and supported by the presentation and analysis of market information.
You may also hear the phrase estimated fair market value. This value is calculated by dividing the property’s assessed value by the municipality’s average assessment ratio. This value may not be the actual market value of a property, and is not used in the calculation of taxes.
We occasionally sell loans to investors such as Fannie Mae in order to provide you with a low fixed rate. If this happens, you will receive a notification letter. Royal still services your loan, and can answer any questions you may have or process your payments.
Loan-to-value is the ratio of your loan balance over your purchase price or appraised value, whichever is less. Loan-to-value ratios are expressed as a percent. For example, if your home has a purchase price and appraised value of $100k and your loan balance is $80k, your loan-to-value ratio is 80%.
If you are considering selling part of your property, for example a few acres of a larger parcel of land, you need to notify Royal and obtain a partial lien release.
Adjustable-rate mortgages will receive a notice of a rate change 45 days before the payment amount changes.
Please contact us for approval if you are interested in putting your mortgage into a trust.