Index

Click here to access Frequently Asked Questions involving new or refinance loans.
1. Why did my payment change?
2. How are escrow surpluses/shortages handled?
3. Can I pay my escrow shortage?
4. Can my escrow account be eliminated if I pay my own taxes and insurance premiums?
5. Do I have enough hazard insurance coverage?
6. Is it possible to refinance my home with ALLIED Group?
7. If I want to sell my home through loan assumption, when should I contact ALLIED Group?
8. When is my payment considered late?
9. What if my payment is postmarked before the late charge assessment?

Why did my payment change?

There may be several reasons. Some mortgages, such as ARM loans, provide for periodic adjustments to your principal and interest payment amount. A second reason for a change may be due to an annual analysis of your escrow account. In compliance with the Real Estate Settlement Procedures Act (RESPA), you will receive an Annual Escrow Disclosure Statement, which shows the adjustment to your escrow payment based on current tax and insurance amounts.

Common reasons for escrow payment changes are:

Your hazard insurance premiums may be adjusted when you change the type of your insurance coverage, or if your insurance rate is adjusted. If you have any questions about your insurance, contact your insurance agent.

Real estate taxes may be adjusted due to changes in the appraised value of your property, tax rate changes, or changes in exemption status (i.e. homestead, veteran, tax abatement, etc) The property owner is responsible for filing exemptions. Contact your local taxing authority for information regarding your taxes.

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How are escrow surpluses/shortages handled?

If the anticipated required balance on the Annual Escrow Disclosure Statement is greater than the reserve allowed, there is an escrow surplus. This surplus will be refunded within 30 days of the analysis date, if the account is current. If the required balance on the Annual Escrow Disclosure Statement is less than the reserve allowed, there is a shortage. The shortage will be divided by 12 and added to your payment for the next 12 months.

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Can I pay my escrow shortage?

You may pay the shortage in full and have your new payment amount reduced by the amount of the monthly shortage (one-twelfth of the total shortage). If you wish to do this, send your check to our correspondence address shown on the Payment Methods page in your coupon book, indicating it is for payment of the escrow shortage. If you pay by Auto-Debit, the shortage must be received at least four business days prior to your normal payment withdrawal date so the payment amount can be reduced.

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Can my escrow account be eliminated if I pay my own taxes and insurance premiums?

When a loan is originated, the mortgage documents specify the escrow conditions. Lenders are required to establish escrow accounts for all FHA insured mortgages. This has become a standard practice for all mortgages, including VA and conventional mortgages. The interest rates quoted to borrowers are normally based on lenders collecting escrows. Once an escrow account is established, it continues for the life of the loan.

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Do I have enough hazard insurance coverage?

Many houses today are underinsured. We suggest you take a few minutes to review your insurance coverage. If you have any questions or believe you need more coverage, contact your insurance agent.

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Is it possible to refinance my home with ALLIED Group?

Yes! ALLIED Group's experienced staff is available to discuss your refinance needs between the hours of 8:00 A.M. to 7:00 P.M., Monday through Thursday, 8:00 A.M. to 5:00 P.M., Friday, and 8:00 A.M. to Noon, Saturday, Central Standard Time. Contact one of our Loan Counselors by email at refinance@agmc.com or by telephone at 800-356-3442 for information about ALLIED Group's loan products and competitive interest rates.

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If I want to sell my home through loan assumption, when should I contact ALLIED Group?

Prior to selling your home, contact our Assumption Department at 800-356-3442 or by email at custserv@agmc.com for additional information and to determine if your loan is assumable.

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When is my payment considered late?

Your payment is due in our office on or before the due date (generally the first of each month). It is considered late the following day. The time between the due date and the assessment of a late charge, normally 15 days, is a convenience to allow for such things as mail delays, weekends, and holidays.

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What if my payment is postmarked before the late charge assessment date?

ALLIED Group does not consider the postmark date. According to your mortgage documents, the date we receive your payment is the date we use to determine whether a late charge is assessed. All payments are processed the day received. Any payments received on or after the late payment date noted on your coupon (generally the 17th) will be assessed a late charge.

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