What About Automated Withdrawals
Another easy option to make sure your mortgage is getting paid on time is automated withdrawals, which will be pulled from your checking or savings account. Meaning your lender automatically withdraws the mortgage payment from your bank account on the same day each month.
To take advantage of automatic withdrawals, visit your lenders website. Once this option is set up, your mortgage payments will be auto deducted each month. By doing this you can guarantee reliable and on-time payments without stressing over having to remember the payment due date. Autopay will also automatically adjust changes to escrow.
Lets say youre a Rocket Mortgage client and missed your payment due date. After the grace period, which ends on the 16th of the month, your mortgage payment will be considered late, with fees and likely negative effects on your credit.
Increase Your Mortgage Payment
Increase the size of your regular mortgage payment to take a large chunk off your mortgage principal. Choose a higher payment amount when you arrange your mortgage, or at any time during the term. This lets you pay down the principal faster.
Example: If you increase your monthly mortgage payment amount by $170 from $830 to $1,000, you’ll save almost $48,000 in interest over the amortization period. And you’ll own your home about 8 years sooner.1
Negotiate For A Better Interest Rate
Negotiate with your current lender. You may qualify for a discounted interest rate that is lower than the rate quoted in your renewal letter. Tell your lender about offers you received from other financial institutions or mortgage brokers. You may need to provide proof of the offers you receive. Make sure you have this information on hand.
If you dont take action, the renewal of your mortgage term may be automatic. This means you may not get the best interest rate and conditions. If your lender plans on automatically renewing your mortgage, it will say so in the renewal statement.
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Costs To Change Lenders
Make sure you find out the costs of changing lenders, such as:
- setup fees with the new lender, which may include discharge, registration, transfer and/or assignment fees from your current lender
- an appraisal fee to confirm the value of your property
- other administration fees
Ask if your new mortgage lender is willing to pay for some or all of your costs to switch.
If I Am Closing On My House Or Have Requested A Payoff Statement Do I Still Need To Make My Payment This Month
Yes. It is important that you continue to submit your monthly payment as you normally would.
If your monthly payment is made using our Automated Payment Program, please contact us at least three business days before your next payment due date to cancel your automated payments by calling our Customer Care Center or visiting your local PNC Branch. If the automated payment is deducted from your checking or savings account after your loan is paid in full, we will return it to you within two weeks.
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How To Pay Your Mortgage With Automated Withdrawals
Choosing automated withdrawals pulled from your checking or savings account is another easy option to make sure your mortgage is paid on time each month. This means your lender automatically withdraws the mortgage payment from your bank account on a specific day each month.
This option can be set up through your lenders website, and once it is in place, the payments will repeat each month. This works especially well if you have recurring deposits on a set day, such as a payroll or government check.
Automatic payments via ACH withdrawal are the easiest way to make the monthly mortgage payment, McBride says. It happens without the homeowner needing to take any action and it can happen even if youre away on vacation and completely unplugged. The only downside is for those that have trouble with overdrafts as you need to make sure the money is in the account and available for immediate withdrawal each month when the payment is taken out.
To take advantage of this option, go to your lenders website and create an account. Next, choose the date when you want the withdrawals to occur every month. You can then log in to see when the payment was credited.
One disadvantage of this route is that you might not be able to easily change the date the payment is withdrawn from your account, especially at the last minute.
How To Pay Your Mortgage Faster
This article was co-authored by Ryan Baril. Ryan Baril is the Vice President of CAPITALPlus Mortgage, a boutique mortgage origination and underwriting company founded in 2001. Ryan has been educating consumers about the mortgage process and general finance for almost 20 years. He graduated from the University of Central Florida in 2012 with a B.S.B.A. in Marketing.There are 9 references cited in this article, which can be found at the bottom of the page. This article has been viewed 65,139 times.
Prepaying your mortgage can shorten the life of the loan and save you a large amount of money in interest. There are two ways to do this: you could contribute extra money every month or you might be able to take advantage of falling interest rates by refinancing the loan. Whichever method you choose, the important thing is to make consistent payments. This article will show you how to save money by shortening your mortgage.
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Can I Access My Loan Information Online
Yes. Once your loan transfer is complete and you have registered and created an account you can view and manage your loan information online. Please contact our Customer Service Department at 1-800-822-5626, Monday through Thursday between 8:00 A.M. and 9:00 P.M. ET, and Friday between 8:00 A.M. and 5:00 P.M. ET if you encounter any difficulties
Keep Your Payments The Same When Changing Your Mortgage
When you renew your mortgage, you may be able to get a lower interest rate.
Some mortgage lenders may allow you to extend the length of your mortgage before the end of your term. Lenders call this early renewal option the blend-and-extend option. They do so because your old interest rate and the new terms interest rate are blended.
When your interest rate is lower, you have the option to reduce the amount of your regular payments. If you decide to keep your regular payments the same, you can pay off your mortgage faster.
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How To Pay Your Mortgage Using A Credit Card
Not all issuers, such as Discover, American Express, Mastercard or Visa, permit paying mortgage payments by credit card. With some cards, this is only an option if you go through a third-party payment platform .
In addition, many mortgage lenders are not fans of this option and do not accept credit cards.
Most lenders wont accept credit card payments for the mortgage and the services that do offer the ability to pay via credit card tend to charge a service fee that offsets the value of any rewards youd be earning, McBride says.
Problems and emergencies, such as an illness or job loss, can and do happen, however. Until you get back on your feet, paying your mortgage with a credit card could be your only option.
Check with your card issuer first. While Mastercard allows mortgage lenders to accept debit and credit cards for payments, Visa has only given the green light for mortgage lenders to take Visa debit and prepaid card payments.
Paying with this method might also seem like an easy way to gain some points on a rewards credit card, but, again, the fees involved can be substantial. These will likely erase the value of any points or cash back you earn.
Yes We Offer An Array Of Options For Making Your Mortgage Payment Online
Yes, we offer an array of options for making your mortgage payment online.
It’s easy to make a mortgage payment using PNC Online Banking and there is no fee. Pay your mortgage from a PNC or non PNC Checking or Savings account by clicking Make a Payment from your account activity page. Make a one time payment for today or pay later with a future dated or recurring monthly payment.
You can automate your monthly mortgage payments and avoid writing checks and paying for postage each month. To authorize an automated payment, complete the online form and follow the mailing or fax instructions. Once you get setup, your mortgage payment is automatically paid each month on the same day.
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How Do I Initiate A Principal Reduction Modification
A letter of request must be submitted stating that you would like to have your monthly payment re-amortized. The letter and the fee should be mailed to:
PNC MortgageP.O. Box 1820Dayton OH 45401-1820
The lump sum principal payment is usually included, but can be made at any PNC Bank, if preferred. Once the principal balance has been reduced, a Loan Modification Agreement is prepared and sent to you for your signature. Once we receive the signed document, we update our database with your new payment amount.
Choose An Accelerated Option For Your Mortgage Payments
An accelerated payment option lets you make weekly or biweekly payments. With this option, youre putting more money toward your mortgage than with a monthly payment.
Accelerated payments can save you money on interest charges. By accelerating your payments, you make the equivalent of one extra monthly payment per year.
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Make A Payment Feature
Pay your mortgage from your PNC or non-PNC Checking or Savings account using the Make a Payment feature within Online Banking.
Same day, future dated or recurring* payments are available. Same day payments scheduled before midnight ET are posted effective that day.
*The recurring payment amount automatically adjusts if your monthly mortgage amount due changes.
Switching Mortgage Lenders If You Have A Collateral Charge
Your mortgage can be registered with a collateral charge. If thats the case and you want to switch lenders, you may have to pay fees. These fees cover the removal of the charge from your existing mortgage and the registration of the new one.
You must meet certain criteria to remove the charge from your mortgage. You must repay in full or transfer to the new lender all loan agreements secured by the collateral charge. This includes car loans or lines of credit.
To find out if your mortgage has a standard or a collateral charge, ask your lender, lawyer or notary. Allow a few months before your renewal date. This will allow you time to consider your options based on how your mortgage is registered.
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Convert Gift Cards Into Money Orders
Another option is buying pin-enabled Visa gift cards with your rewards credit card, then using those gift cards to pay for money orders. Most people can buy pin-enabled gift cards at a grocery store, which can make sense if you have a grocery store credit card offering bonus points in this category. . From there, you can set up your PIN and use your gift card to purchase money orders from banks, a grocery store, Walmart or anywhere else money orders are sold.
Your ability to pull this strategy off may be somewhat location-specific. For example, your local grocery store may have a strict policy when it comes to the types of cards you can use to buy money orders. You may also find your average grocery store customer service person couldnt care less how you pay, so it might be hit or miss.
Also keep in mind that some banks specifically say that gift cards are considered a cash equivalent and do not earn rewards. While this may not prove to be true if you buy the occasional gift card, as soon as you start buying thousands of dollars of gift cards each and every month things could change.
Youll also want to think about how youre going to use the money orders to pay your mortgage. This is important: If you live near a brick and mortar branch of the bank that holds your mortgage , you can visit your bank in person and pay your mortgage payment with money orders directly. But if you have to mail your money orders to your mortgage lender, you may want to think again.
Does Pnc Mortgage Hold The Deed To My Property
No. You should have received a copy of the Deed after the closing on your loan when you purchased the property. The original Deed was sent for recording at the Recorder’s Office of the county in which your property resides. The Deed should then have been returned to you. You may obtain a copy of the recorded Deed from your County Recorder’s Office.
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Can I Pay Additional Money Towards My Principal And Have My Loan Re
Some loans qualify for a Principal Reduction Modification. PNC Mortgage will allow you to pay a minimum of $10,000 towards your principal and re-amortize your loan, which will reduce your monthly principal and interest payment. To find out if this option is available to you, please call one of our Customer Service Representatives at , or mail your request to:
Dayton, OH 45401-8807
How To Pay Your Mortgage With Online Banking
The easiest option for most homeowners is to pay for their mortgage through either their bank or mortgage lender or servicers website. Online payments are fast, free and efficient, and paying online means you can decide when you want to make the payment, maintain a record of when it was made and ensure that it is paid by the due date.
Depending on the lender or bank, payments can also be automated without you having to log into a website each month.
Going to your lender or loan servicers website and making the payment puts you in control of the timing, says Greg McBride, CFA, chief financial analyst for Bankrate. The downside is that this is something else each month you need to do or be reminded to do.
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Find The Best Interest Rate
Interest rates determine how much you spend on interest in addition to the principal. Generally, the higher the rate, the more you pay over the length of your mortgage. So, its important to choose a mortgage with a rate that fits into your repayment plan.
Mortgages come in 2 interest rate categories:
- Fixed-rate mortgages lock your rate for an entire term. This makes it easy to track how much principal you pay back each month
- Interest rates on variable-rate mortgages can change at any time your rate could be higher or lower, depending on the market. But lower interest rates mean you pay more on the principal and pay off your mortgage faster
Interest rates vary on different mortgages, depending on their features. For example, you pay a higher interest rate on mortgages with cash-back benefits. With a cash-back mortgage, in addition to the mortgage principal you get a percentage of the mortgage amount in cash. You can use this money to buy investments, pay for a special event or renovate your home. But cash-back mortgages aren’t available at all financial institutions.
Tips To Always Pay Your Mortgage On Time
To ensure you always pay your mortgage on time, consider setting up autopay from your bank account and, if you havent already, arranging for direct deposit so your paychecks get sent there. Keep in mind that most mortgage payments are due on the first of the month.
You might also choose to get ahead by prepaying your mortgage. This strategy has the added benefit of reducing your loan principal faster .
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When Does My Lower Payment Go Into Effect After The Principal Reduction Modification Has Been Completed
There is a six to eight week processing time before the new payment becomes effective. However, you will have the benefit of paying less interest immediately, so any payments made after the principal has been reduced and before the new payment amount becomes effective are applied to the principal balance of your loan.
Why Would My House Payment Go Up
You have an escrow account to pay for property taxes or homeowners insurance premiums, and your property taxes or homeowners insurance premiums went up. … If your monthly mortgage payment includes the amount you have to pay into your escrow account, then your payment will also go up if your taxes or premiums go up.
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How Do I Get Rid Of My Pmi
To remove PMI, or private mortgage insurance, you must have at least 20% equity in the home. You may ask the lender to cancel PMI when you have paid down the mortgage balance to 80% of the home’s original appraised value. When the balance drops to 78%, the mortgage servicer is required to eliminate PMI.
Why You Should Avoid Bank Bill Pay
Setting up recurring payments is a great way to ensure that you dont miss a payment. However, when you set them up through your bank, its not always clear when your payment will be processed.
When you go to your financial institutions website and set up a payment to be made on a specific day, your funds are cleared by your bank on that day. But that doesnt mean that money will make it to your mortgage servicer when you need it to. The date sent isnt the date received.
In fact, you cant be sure when your money will ultimately arrive, and neither can your mortgage servicer. Even worse, your mortgage servicer cant track a payment made through bank bill pay, so it has no ability to confirm when or even if the payment will arrive.
If your mortgage payment doesnt reach your servicer until after the end of the grace period the 16th of the month for Rocket Mortgage® clients it will be considered a late payment. As a result, youll end up getting charged a late fee for a payment that you were on top of, but your bank wasnt.
Meanwhile, if you want to pay off your mortgage early and send more than your monthly payment to pay down your principal, a number of errors can arise. Even if you specify where you want the additional funds to go when making the payment through your bank, that information isnt forwarded to your mortgage servicer.
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