One of the most important aspects of obtaining a mortgage is making timely monthly payments. Your monthly payment covers –
- Late fees
- Life and/or Peril Insurance
When we receive your payment, we first allocate the appropriate portion to any late fees that may be owed. Secondly, we deduct the portion that services Life and/or Peril Insurance. Following these preliminaries we collect the amount due for interest on the loan and then the remainder will be paid towards your principal (the remainder of what you borrowed).
Loans in arrears may be outsourced to an external debt collection services.