Fairway Independent Mortgage: Payment Information, Loan Servicing
Fairway Independent Mortgage Servicing: Understanding Escrow, PMI, Servicing Transfers, and Your First Payment
Loan servicing by FairwayNEXT provides convenient ways to obtain valuable information about your mortgage loan, such as where to make your first payment as well as who your current servicer is, and, if necessary, you can make a one-time ACH payment!
Mortgage Servicing Transfers
Your mortgage loan involves many activities, all handled by your mortgage servicer. These include applying your monthly payments, paying taxes and insurance from your escrow accounts, adjusting payments on adjustable-rate loans, and more. If your loan transfers to another servicer, you’ll receive a Notice of Servicing Transfer before and after the transfer, or a combined notice. This notice is mailed in a Fairway green envelope. If you don’t receive it, email us at servicing@fairwaymc.com or call our toll-free number (800) 201-7544. Additionally, the ownership of your mortgage may change, often notified by Fannie Mae or Freddie Mac. However, a transfer of servicing doesn’t change your mortgage terms.
How To Make Your First Mortgage Payment
- Use your Fairway Mortgage Login credentials to make your first mortgage payment through our online portal FairwayNext
- If you don’t have an online account, you may create one by entering your Loan Number or Last Name, last 4 digits of SSN/TIN, and property zip code.
- Obtain monthly mortgage payments and loan details
- Process a one-time online payment
- Get notifications, such as the notice of transfer
Mortgage Servicers: Who Are They and How They Can Help
Upon the sale and servicing transfer of your mortgage loan, Fairway cannot subsequently change your neServicerer. Your neServicerer controls the activities and decisions supporting your mortgage loan. With written authorization (per your neServicer’s requirements), Fairway may advocate for you if requested. Even if your servicing transfers, your relationship is essential to us at Fairway.
No More Rush: Take Your Time to Find the Perfect Home
Time pressure can make anyone settle for less. But why should you compromise on something as important as your dream home? The Lock, Shop, and Go program ensures that your rate remains in place for a specific period, allowing you to scour the market, compare, and find the right home with no strings attached.
Private Mortgage Insurance (PMI) Explained
Mortgage insurance is required on Conventional mortgage loans that originate with a loan-to-value (LTV) ratio of 80% or more. If the down payment at the time of the origination is less than 20% of the original mortgage loan amount, PMI must be included in the escrow portion of the monthly payment.
Escrow: What Is It And How Does It Work?
1. What is an escrow account
An escrow account holds part of your monthly payment What Is A Mortgage Rate And Term Refinance? to cover yearly costs like taxes, homeowners and mortgage insurance, and other applicable items. The monthly escrow payment equals 1/12 of these total costs and is added to your payment’s principal and interest. Depending on your property’s location and state, additional factors may influence this calculation. The escrow amounts may change yearly, based on fluctuations in your tax and insurance amounts. Cushion amounts may be no more than 1/6 of the total escrow charges for the year, which means no more than two months’ worth of monthly escrow collection may be maintained in the escrow account above and beyond amounts required to pay the bills for escrowed items when they come due.
2. What should I do if I get a tax bill from the city or county saying that my mortgage servicer did not pay my taxes?
Some city and county tax agencies send copies of bills to the property owner, even if taxes are included in your escrow account and paid. If you have questions or would like to forward the statement to Fairway to ensure it is paid, please email us at servicing@fairwaymc.com or call 1-800-201-7544.
3. Is an escrow account required on my mortgage loan?
Typically, if you take out a conventional mortgage loan and borrow more than 80% of the property’s value, your lender will require an escrow account. However, if your down payment is 20% or higher, you can likely get the escrow requirement waived upon request. Keep in mind that an escrow waiver fee may apply. For FHA and VA loans, an escrow account is required for the life of the loan.
4. How To Remove an Escrow Account From Your Mortgage
To have your escrow account removed from your mortgage, you’ll likely need:
- Less than 80% LTV on a conventional loan
- No delinquencies within the last year and – depending on your investor – no 60-day delinquencies within the last 2 years
- No loan modifications
- No defaults on previous escrow waivers
- No escrow payments scheduled to come out of your account in the next 45 days
- A positive or zero escrow balance
- The loan to be at least 1 year old
In some instances, escrow accounts may be removed from the mortgage loan. These have to be reviewed on a case-by-case basis, and a written request signed by every customer on loan is required. For more information, please email us at servicing@fairwaymc.com or call 1-800-201-7544.
FAQ
Find Out Answers Here
Conventional mortgages hold the title as the most popular type, with lenders originating more than 4.1 million conventional loans in 2022. This contrasts with over 1.3 million nonconventional mortgage originations, including FHA, VA, and USDA mortgages, highlighting the diverse needs of homebuyers.
VA loans often feature the lowest interest rates, benefiting from the support of the Department of Veterans Affairs. However, FHA mortgages also offer competitive rates, particularly for those with less-than-perfect credit histories. Ultimately, securing the best rates depends on various factors, including credit score, debt-to-income ratio, property type (single-family home, condo, or multi-family and down payment size.
FHA mortgages are generally considered the easiest to qualify for, designed to assist those with lower incomes or less-than-ideal FICO scores. If you’re finding it challenging to qualify for a conventional mortgage, an FHA loan could be a viable path to homeownership.
Many first-time homebuyer programs allow buyers who haven’t owned a property in the past three years. This includes divorced spouses who have only jointly owned a home with an ex-spouse.
Choosing the best mortgage lender will depend on the home loan options you’re applying for, how much you want to borrow, the term of the loan, mortgage interest rate, and many other factors. Review our guides for best mortgage lenders, top FHA lenders, and best VA lenders.
Choosing the right mortgage is a significant decision that will impact your finances for years to come. Whether you’re considering a loan backed by the U.S. Department of Veterans Affairs to take advantage of lower mortgage rates without the need for upfront mortgage insurance or exploring a USDA mortgage to purchase a home in a rural area, tools like a mortgage calculator can be invaluable. They help you understand the total loan cost, including the life of your loan and potential higher monthly payments. Remember, making a down payment can reduce your monthly obligations and increase the equity in your home from the start. Ultimately, the best path forward involves careful consideration of your ability to qualify for a mortgage, the type of loan that suits your financial situation, and how long you plan to stay in your home, ensuring you select the mortgage that aligns with your long-term goals.
