| Frequently Asked Questions (FAQ) | |
Q: How do I contact MGC regarding my existing mortgage loan? A: You can contact MGC:
Q: What do I do if I have lost my account statement or did not receive an account statement? A: You are still responsible for making your payment on time. Please write your loan number on your check or money order and send your payment to the above address. Q: How long does it take for my payment to be posted after you receive it? A: Payments will post within 24 hours of the day of receipt provided they are received on Monday through Thursday. Payments received on Fridays, a weekend or holiday will post on the next regular business day. Q: What is ACH and how do I sign up? A: Automated Clearing House ("ACH") is an alternative, automatic monthly payment method. It saves you time and money by eliminating check writing, postage, and overnight mailing fees. It also avoids late fees because your payment is always received on time. To sign up for this free service, please contact us at 1-866-377-8667. Q: Why did my payment change? A: Your payment could have changed due to one of two things. The first is that your loan could be an adjustable rate mortgage (ARM) wherein your interest rate changes. The second reason your payment could have changes is related to your escrow account which was set up to pay your taxes, insurance and/or mortgage insurance premiums. As your premiums increase from year to year, your escrow payment must be adjusted accordingly to ensure that we are collecting a sufficient amount to pay these items for you. Q: What is an Adjustable Rate Mortgage (ARM)? A: This is a loan in which the interest rate is adjusted periodically. The amounts and times of adjustment were agreed upon in the loan documents you executed at closing. The principal and interest payment amount is adjusted according to the rate adjustment or preset amounts in your loan documents. Q: What is an escrow/impound account? A: An escrow account is set up at the time of closing for the purpose of paying future hazard insurance, property tax and mortgage insurance premiums each year. As part of your monthly mortgage payment, 1/12 of your combined premiums are collected for deposit into this account until we pay the premium on your behalf. Back to Top Q: How often is the escrow account analyzed? A: Your escrow account will be reviewed at least once a year. We will compare the monthly deposits into your escrow account to the projected payments to be made from your escrow account. You will receive a written escrow analysis notifying you in advance of any necessary adjustments to your monthly payment amount Q: Who pays my taxes and hazard insurance? A: If you do not have an existing escrow account on your loan, you are responsible for paying your taxes and hazard insurance premium when they become due. If you have an existing escrow account, MGC will send payment for your taxes and insurance from your escrow account. If you are unsure if you have an escrow account, please contact us. Q: Am I required to have homeowner's (hazard or property) insurance? A: Yes. If you have a home loan, you must have adequate insurance to cover the structure against loss. Per your signed Mortgage and Note terms, you are required to provide evidence of insurance upon request. If MGC does not have proof of coverage, we will notify you that we need this information. Q: If I cannot make my payment on time, should I tell you? A: YES. It is important that we know if you are having temporary financial difficulties as we may be able to assist you with options so please contact us. Q: If I have financial problems, can MGC help? A: Yes. We can speak to you about options you have due to financial hardship in an effort to help you retain ownership of the home. Q: What is a Payoff Quote? A: A Payoff Quote is a statement that itemizes the total amount required to pay the loan in full. Q: Is my principal balance the same as my payoff amount? A: No. The interest on your loan is calculated in arrears. For example, when you pay your June payment, you are paying the interest that was due for May and the principal that was due for September. Q: What is the amount needed to pay off my loan? A: The balance on your statement is NOT the amount needed to pay off your loan. If you are planning on paying off your loan, you need to request a payoff letter to be sent to you. Please be aware that our representatives cannot give you a verbal payoff quote. Back to Top Q: Do you accept personal checks to pay off the loan? A: No, only certified funds will be accepted to pay off a loan. All payoff funds must be in one of the following forms: Cashier's Check, Bank Certified Check, Title Company Check, Bank Wire or Attorney's Escrow Check. All other forms of payment will be returned and the payoff will not be processed. Q: Where do I send the payoff funds? A: You can remit the payoff funds to the below address:
Tulsa, OK 74137 Q: How long will it take the lien to be released from my property after I have paid off my loan? A: MGC complies with state requirements for lien releases/satisfactions and sends the releases to the appropriate recording offices within the state required time frame. However, the actual recording of the lien release/satisfaction is performed by the county/city/parish where the property is located. Upon receipt of the lien release/satisfaction document, most jurisdictions record the document within 45 to 60 days. However, some counties can take 6 to 9 months. Q: Can MGC refinance my loan? A: We are unable to assist you with refinancing as we are a mortgage loan servicer and do not originate loans. You should contact a lending institution in your area for refinancing options. Q: What is a subordination? A: When a borrower refinances their 1st mortgage loan a new mortgage is created and the original loan is paid off. The new mortgage company asks the junior lien holders to remain in a subordinate position so that when the new mortgage is recorded it remains in first lien position, in essence, taking the lien position place of the mortgage that was paid off by the refinance. By executing a Subordination Agreement, a junior lien holder agrees to stay in a lower lien position (for example, a second lien). Q: How do I obtain a Subordination Agreement on my second lien so that I can refinance my first mortgage? A: MGC will provide a subordination requirements list to you or your mortgage company. If the proposed refinance meets all criteria, MGC will agree to subordinate the lien. A Subordination Agreement will have to be drafted by your new mortgage company to be executed by MGC. Q: When will I receive my Year-End Tax and Interest information? A: By the end of January each year, you will be sent a statement (Form 1098) of the interest that you paid on your mortgage during the previous calendar year. Back to Top |