Colonial Savings Mortgage Customer ServiceMortgage Payment Changes Section
My payment increased due to escrow analysis. What is escrow analysis and why did it cause my payment to increase?
    Most payment changes due to escrow analysis result from increased real estate taxes and/or hazard insurance premiums. They may also occur after a refinancing when the escrow reserve requirements have changed. Most new escrow accounts are governed by the federal Real Estate Servicing Protection Act, which in most cases establishes a maximum two-month escrow balance reserve. If you refinanced, your previous loan may have had a different requirement. This change can result in an escrow shortage.

Will my payment ever change?
    Your payment may change if you have an adjustable rate or graduated payment loan or if Colonial Savings pays your taxes and insurance from an escrow account.
    If your loan is not a fixed rate loan, your closing documents will disclose the timing and manner of rate calculations.
What does ARM mean and why is my loan labeled as such?
    An ARM loan is an ADJUSTABLE RATE LOAN : a fully amortizing loan with an interest rate that can change upward or downward at set periods of time based on the performance of an established INDEX, such as the Treasury Securities.

How do you calculate the payment on my ARM loan? What are the adjustment period, interest rate index, and rate/payment caps for my loan? How can I convert my adjustable rate mortgage?
    This information varies widely between loans in accordance to the terms of your note. For more information regarding your specific loan, please either call us at 1-800-937-6002, or send your questions (sign on required) here.

My payment and interest rate increased even though the index decreased?
    Most likely the rate index increased between the latest and previous adjustment dates. For more information, please either call us at 1-800-937-6002. or send your questions (sign on required) here.

Why is my principal balance increasing? My balloon note is due this year. What options do I have to convert this note?

 

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Equal Housing Lender
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