What is included in my monthly mortgage payment?
The principal balance of your home loan is the amount of money that you originally borrowed to pay for your house. Every month, your mortgage payment will cover a portion of your principal balance.
The amount of money you pay each month is based on your interest rate (the annual cost of borrowing money from a lender) and your amortization schedule (the way your principal and interest payments are distributed over the life of your loan). Your interest rate will have an impact on the total cost of your home – the higher your rate, the more money you’ll pay over your mortgage term.
When you close on your home, OKCU will open an escrow account for property taxes and homeowners insurance premiums. Every month, you will make a prorated payment for both expenses, and the balance in your escrow account will be used to pay your property tax and homeowners insurance bills in full annuallly.
Private Mortgage Insurance (PMI)
If you purchased your home with a down payment of less than 20%, you will be required to pay for private mortgage insurance. PMI is designed to protect OKCU from high-risk borrowers – homeowners who may default on their loans.
Can I find out how my mortgage payment is being applied to the principal balance, interest and escrow?
You can call us at 405.763.5496 or email us at RELoanServicing@okcu.org
to get a copy of your amortization schedule. If you are searching for a convenient way to get a rough estimate, you can use our Home Mortgage Calculator to review the principal, interest and escrow charges that make up your monthly payment.
Can I make extra payments on my mortgage? How do I do that?
Yes, you can make extra payments without being charged an early prepayment penalty. Please call 405.763.5496 or log into online banking to get started; make sure that you apply your payment to the principal balance of your mortgage to pay off your home loan faster. You can also mail your payment to P.O. Box 24027 Oklahoma City, OK 73124. Please state that you want your extra payment applied to the principal when you fill out the memo section on your check.
Why did my mortgage payment change?
If you have a fixed-rate mortgage, your PI (the combined payment for principal and interest) will remain the same. Your escrow payment, on the other hand, will change whenever your property tax bill or homeowners insurance premium fluctuates. If your tax and insurance bills go up or down, your monthly mortgage payment will too.
What is an escrow analysis and how will it help me manage my monthly mortgage payments?
An escrow analysis is a document that breaks down your escrow payment history over a twelve-month period. Every February, we create an annual escrow account disclosure statement that includes an escrow analysis of your past payments and a series of projected payments for the next year; that way, you will know if your monthly mortgage payment will increase or decrease. Please email us at RELoanServicing@okcu.org if you have any questions about your annual escrow account disclosure statement.
When can I order a new mortgage coupon book?
Every April, we recalculate your monthly mortgage payment based on the results from your escrow analysis; if you make your mortgage payment via mail, you will need to order a new mortgage coupon book to make sure you are sending us the correct payment amount. We want to make this process as easy as possible for our members, so give us a call at 405.763.5496 to place your order. Let us know which OKCU account you would like to use to pay the $5 processing fee, and we will send you your updated coupon book within 2-3 weeks.
I’ve filed a mortgage insurance claim. What should I do now?
If you need to deposit a check from your insurance company, we will ask for the following documents to process your payment in a timely manner:
- Insurance Claim Summary (typically arrives with the claim check)
- Claim Check for Deposit
- Contractor Invoice and/or Estimate(s)
- Receipts for Material, Supplies, etc.
Any requests for additional documentation will vary based on your loan type, so make sure that you contact us at 405.763.5496, RELoanServicing@okcu.org or visit one of our locations for further assistance. Keep in mind, investor approval and/or property inspection(s) may be required prior to the disbursement of your insurance proceeds.
What should I do if I change my insurance company?
Let OKCU know by sending an email to RELoanServicing@okcu.org or calling 405.763.5496. Your premium may change if you modify your insurance policy, whether you’re getting additional coverage for your home or canceling your existing plan. It is important for you to deposit any refund checks you may receive into your escrow account, where they will be applied to your new premium.
What if I cancel my homeowners insurance policy?
If you cancel your policy without sending us the information for your new insurance provider, we will apply a lender-placed insurance policy to your escrow account. This type of homeowners insurance is expensive, and is designed to protect OKCU against the risk of an uninsured home – not the borrower.
What will I need to complete my tax return?
A Mortgage Interest Statement (Form 1098) is mailed to members at the end of January, and if you have signed up for online banking, you can also view an electronic copy of your tax documents by clicking on the Statements tab.