Frequently Asked Questions


Insurance


Q: What is the difference between private mortgage insurance and homeowners insurance?


A: A homeowners insurance (or hazard insurance) policy covers damages to your home, your belongings and accidents as outlined in your policy.

Mortgage insurance is required if you have less than 20% equity (or down payment) in your home and protects the mortgage lender if a customer is unable to make loan payments and defaults on the loan.


Q: What is forced placed insurance?


A: When an insurance renewal billing is not received by the expiration date or the current insurance carrier is not renewing the policy, State Home Mortgage covers the property with a forced placed insurance. This is lender placed and provides coverage only for the structure and not the contents on the property. This coverage is expensive and homeowners are notified when this is placed. You are encouraged to find coverage with an insurance agent of your choosing.


Q: How long do I have to pay for private mortgage insurance (PMI) on my loan?


A: If you obtained your loan after July 29, 1999, you can request cancellation of PMI when your loan- to-value (LTV) reaches 80%.

Cancellation requires that you have a good payment history, the property value has not decreased, and you can certify that there are no liens against your property.

Lenders are required (by the Homeowner's Protection Act of 1998) to terminate PMI at 78% LTV (based on the amortization schedule) if the loan is current or has reached the midpoint of the payoff.


For Hazard Insurance information - please click here.


Mortgage Account Management


Q: Who do I contact if I am having trouble paying my mortgage?


A: We can help you understand your options if you are facing payment challenges. Call 800-781-8346.


Q: Can I make a mortgage payment online?


A: Yes, you can make a payment and manage your mortgage account online, anytime. Gain instant access to your mortgage account details, loan history, tax and interest data, contact information updater, and more. It's fast, it's simple, and it's FREE! www.statehomemortgage.net


Q: Can I have my mortgage payment deducted automatically from my checking or savings account each month?


A: You do have the option of enrolling in an automatic mortgage payment program. You may be asked to provide an authorization form with a voided check or savings account slip attached to set up the draft. The payment is typically debited on the 1st or 10th of the month. You can fax a written request along with voided check to 404-679-4837. A confirmation will be mailed prior to draft date.


Escrow Accounts


Q: Why is the tax bill sent to my home when I have an escrow account?


A: The county tax office is unaware which lender is associated with each property. State Home Mortgage has a vendor Core-Logic who provides us with a bill for each homeowner. It is not required that you send us the bill you receive unless it is a supplemental bill due to an appeal or you receive a delinquent bill.


Q: If my insurance or taxes are lower or higher do you automatically analyze my account to adjust the payment?


A: The account is analyzed annually on the anniversary of your loan. By special request you can have an analysis completed for a fee if on a date other than the anniversary date.