Paying the mortgage is usually one of the most expensive bills that you pay each month. While a mortgage payment can be a source of pride, knowing that you are a homeowner, it can also lead to certain problems if it is not handled correctly. Make sure to avoid these 5 common mortgage mistakes to ensure that your home does not end up underwater.
- Paying extra money with no explanation. While you may think that paying extra money towards your mortgage will help to pay off your mortgage faster, it may end up causing more confusion to your lender. Make sure to explain why you are paying more than our payment, such as if you are adding money to your escrow account or prepaying before a vacation.
- Putting an important note in the memo section of your payment check. While this may seem like the best place to explain what the check is for, many times your lender will not be able to see it. Make sure to contact your lender if you have an important note that they need to know about.
- Not including the loan number on your check. Make sure that whoever if making the payment includes the number of your loan on the check to ensure that the correct information is used to process your payment.
- Using a bank deposit to make a payment. Always use a check when paying your mortgage to ensure that the payment is processed.
- Mistaking recurring payments through your lender for bill pay through your bank. Online bill pay will not change the amount of the payment if the amount owed for your mortgage changes, which usually happens do to an increase in the tax and insurance of escrow. A recurring payment through your lender will change the amount that is taken out of your account when the required amount changes.
For all of your Hermosa Beach escrow needs to make sure that you do not make any of these common mistakes, contact Brighton Escrow.