5 Ways to Make Sure Your Mortgage is on Track

It's time to make sure your mortgage is on the right track. The Consumer Financial Protection Bureau (CFPB) rules require that your mortgage servicer send you more information and fix mistakes quickly. 

And if your interest rate has changed this year, you should have got a heads up to give you more time to shop for a better deal. 

I hope you have taken the steps to make this year one with fewer runarounds and surprises.

By February you should have received a new monthly mortgage statement showing how your mortgage servicer credited your monthly payments along with any extra payment. Your statement also puts the important information you need in one place: Your interest rate, the balance on your loan, and how your payments are applied. If you use a coupon book, your mortgage servicer will have to send you a coupon book that complies with the new rules.

1. Check for delays.

With very few exceptions, your servicer must credit your mortgage payment as of the day they receive it. Check your statement to see if your payments were credited on time.  If not, call or write your servicer and tell them to correct the problem.

2. Fix mistakes.

The new CFPB mortgage rules require servicers to investigate and fix, in a timely manner, any mistakes that you report. If your servicer won't help you when you call, submit a written error notification for more protection.

3. Shop around.

Your monthly mortgage statement will show you your interest rate and principal balance. Compare your rate to current interest rates. You can find local rates online or in the business section of your newspaper. If your interest rate is higher than current rates, you might look into refinancing.

4. Prepare for your rate reset.

If you have an Adjustable Rate Mortgage (ARM), your mortgage servicer is required to send you an estimate of your new payment seven or eight months before your interest rate resets for the first time. If you have an ARM that has already reset once, you will be notified two to three months in advance of the next reset. This advance notice is designed to give you time to budget for your new payment or shop for a different mortgage.

5. Get help and take control.

If you are having trouble paying your mortgage, you will get a warning that you're late on your payment on your new monthly statement. CFPB rules also generally require your mortgage servicer to reach out to you. But you don't have to wait until you fall behind to act. 

Take control. If you submit a complete application for help soon enough—often called a loss mitigation application—CFPB rules require your servicer to evaluate you for options that may be available to you to avoid foreclosure.


Call (773) 614-3201 if you need some help in understanding your mortgage statement or if you are considering refinancing. Click here to calculate your mortgage.

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Raise Your Children in a Home, not an Apartment

While the value of home ownership as a way of building wealth over time for either single parents or two parent families is well accepted, hardly mentioned is the value of home ownership on the cognitive and behavioral outcomes of the household's young children. Homeownership and Child Outcomes In a recent study on the impact of home ownership on child outcomes, while controlling for the child's gender and health, number of siblings, and characteristics of the household's locality, has indicated that the impact on a child's cognitive outcomes is up to 9% higher in math achievement and 7% higher in reading achievement for children living in owned homes.  Moreover, it is found that the measure of child behavior problems is up to 3% lower if the child resides in a owned home. The result concludes that these youth's greater cognitive abilities and fewer behavior problems will result in higher educational attainment, greater future earnings, and a reduced tendency to engage in deviant behaviors. Steps to Becoming a Homeowner If you are a single parent with the responsibility of raising your children without the help of a spouse, the home environment is even more significant. Although, renting an apartment might be your only current alternative, it would be wise for you to begin taking the necessary steps towards becoming a homeowner. In recent years, the criteria for acquiring a mortgage has become less restrictive. Even though the 30-year interest rate continues to be at an all-time low, unless you apply for a FHA mortgage in which the down payment is 3.5%, you will have to have a down payment of about 5%. And, in addition to the down payment, your middle score on your credit report has to be at least 620. Planning for A Mortgage Consequently, even though the 30-year interest rate is still at an all-time low (currently approximately 4.5% nationwide), home ownership is down because of the down payment and credit score requirements. Planning ahead has to include both saving consistently to build up the down payment as well as a careful review of your credit report with the goal of getting your middle score up to at least 620 or above.  Nevertheless, with a FHA loan and a down payment of 3.5%, your monthly mortgage payment on a $125,000 home would be $611.19. Compare that with your rent payment as well as another mortgage payment scenario. Recently many conventional mortgages have began offering programs with only 3% down.  Many landlords now looking to rent their apartments have discovered the need to be receptive to an applicant with a lower credit score due to the shaky job market and the realization that many applicants are losing their homes to foreclosure.  If you are currently renting, use the time remaining on your lease to take the steps mentioned earlier. In my opinion, renting should be only temporary and out of necessity. For a single parent, the overwhelming value to yourself and your children is to be a homeowner. Call (773) 614-3201 or e-mail me at bwillbar@gmail.com for a free consultation. Any Comments? Leave them below.

Medicare Enrollment Periods You Must Know About

The issue of the Enrollment Periods needs to be expanded upon. Remember, the Center for Medicare and Medicare Services (CMS) has established four basic enrollment periods in which Medicare recipients with both Part A and Part B can enroll in a Medicare Advantage Plan (MAP), Part C or a stant alone Prescription Drug Plan (PDP).

Enrolling in Medicare Advantage Plans
Enrolling in Medicare Part C or Medicare Advantage Plan (MAP) is optional. If you want to enroll in a MAP, you must be entitled to both Part A and Part B.

Your Enrollment Periods

• Initial Enrollment Period (IEP) allows you to join a MAP three months before your birthday month, your birthday month, and three months after. 
• the Annual Enrollment Period (AEP) from October 15th to December 7th, 
• the General Enrollment Period (GEP) from January 1st to March 31st 
• and, the Special Election Period (SEP)

During the AEP beneficiaries may change their PDP, change their MAP, return to Original Medicare, or enroll in a MAP for the first time.

Re-enrollment and Dual Eligibility
During the GEP, if you didn't enroll in Part A or B during the IEP, or terminated your Part A or Part B benefits and want to re-enroll in either or both Parts, you may do so during this period. If you enroll during the GEP, your benefits will begin the following July 1st.

Finally, during the SEP if you  have special needs, specifically diabetes or have Dual Eligibility (qualify for both Medicare and Medicaid) ,you can change your plan anytime during the year with no limit to the number of changes. This includes your prescription drug plan. This choice under the SEP is also available to those who move into, reside in, or move out of a nursing home.


If you have any questions regarding what plan would be best for you, call (773) 614-3201.

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