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Why is the payoff amount higher than the principal balance?

In addition to the unpaid principal balance, the payoff quote shows the interest due and any outstanding fees and expenses. These may include late charges, tax or insurance advances, recoverable balances, attorney fees, payoff-related fees, etc.

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Once the account is paid in full, when will I receive a refund for my escrow account balance?

After we make any required escrow disbursements, we will refund the remaining escrow balance. We will send the refund check to the mailing address on file. Please allow 20 business days to receive the refund check.

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Once my account is paid in full, when will we get our PMI/Hazard refund?

We will send a check for the PMI or hazard insurance refund to the mailing address on file within 20 days. Please allow additional time for mailing.

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Once the account is paid in full, when will I receive my payoff overage check?

If you send additional payoff funds, we will send a check for the overage to the mailing address on file within 20 days. Please allow additional time for mailing.

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How long before I get my loan documents back after payoff?

We will send the loan documents within 90 days after payoff. 

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What is mortgage insurance?

Mortgage insurance helps you to get a mortgage without having to make a substantial down payment. By paying a mortgage insurance premium, you can purchase a new home with less than 20% down. Mortgage insurance protects the mortgage investor if the account becomes past due.    The most common types of mortgage insurance are private mortgage insurance (PMI) and insurance through the Federal Housing Administration (FHA), called a mortgage insurance premium (MIP).   If you are...

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What is private mortgage insurance (PMI)?

PMI is a type of mortgage insurance. It is typically required on a conventional loan if the down payment is less than 20% of the home’s purchase price. PMI may also be required to refinance if your equity is less than 20% of the value of your home. Equity is the amount you have paid toward the loan principal through the down payment, your monthly payments, and additional payments to principal. Increases to your house’s market value can also increase your equity.

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Can private mortgage insurance (PMI) be canceled?

Yes, PMI may be canceled in certain circumstances.Automatic Termination  If you’re required to carry PMI, we’ll cancel it automatically when your loan-to-value (LTV) ratio is scheduled to reach 78%. The LTV ratio is the difference between the loan amount and the original market value of the home. LTV Example: If you borrow $88,000 to buy a house valued at $100,000, your loan-to-value ratio is 88%. ($88,000 /$100,000 = 0.88, or 88%).Based on the original home...

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What are substantial improvements?

Substantial improvements are changes to your home that increase the home’s value. For example: Significant structural alterations, including adding square footageConstruction requiring permitsAdding new features, such as a new bathroom, central air conditioning, etc.Repairs and home maintenance are not considered substantial improvements. For example:New flooringNew appliancesPaintingReplacing the roof or siding.

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How can I cancel private mortgage insurance (PMI)?

You can request PMI cancellation by: Emailing us at CustomerCare@MortgageFamily.comCalling us at 1-800-449-8767Once we receive your request, we will mail you the specific requirements for your account.

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