ESCROW
What is an escrow account?
An escrow account is a reserve held by Capitol Federal® for the payment of real estate taxes and property insurance and other insurance premiums. Other insurance premiums may include flood insurance, mortgage life and disability premiums, and debt protection costs. With each monthly payment you make, the portion attributed to the payment of those taxes and insurance premiums is deposited into the escrow account. We pay the taxes and insurance premiums from the funds accumulated in the escrow account.
Why would my escrow account have a shortage?
The most common reason your escrow account may have a shortage is due to an increase in the insurance premiums or tax amounts after we estimated the amounts during the most recent escrow analysis. The resulting "shortage" would require an increase in the monthly escrow payment, both to restore the escrow account balance and to pay the higher premium or tax amount in the future.
Will my escrow payment change, and if so, how often?
Escrow accounts are analyzed at least once every 12 months to calculate a new escrow payment for the following 12 months. If the analysis determines the existence of a shortage in the escrow account, the payment will increase. If the analysis determines the existence of surplus funds, the payment will decrease or remain unchanged and a refund may occur.
I made changes to my insurance premium. Can my payment be adjusted?
Absolutely, and the process is simple. Visit one of our branches or contact a customer service or loan servicing representative toll-free at 888-822-7333 to confirm that we have received the updated information from your insurance company. A change to the payment will require a re-analysis of the escrow account, so be certain to advise the representative that you are requesting an escrow re-analysis.
My insurance agent said I could lower my premium if I raised my deductible. Can I do this, and if so, what are the deductible limits?
Yes, with certain limitations. Currently the property insurance policy deductible may not exceed two percent of the dwelling coverage amount with a maximum of $10,000. Other restrictions may also apply. For information on your specific situation, visit one of our branches or contact a customer service or loan servicing representative toll-free at 888-822-7333.
What do I need to do if I want to change homeowner insurance companies?
Once you have made a decision on a new insurance company, request the new company to send us a copy of the declarations page for your new policy. The item can be forwarded to us in several ways, including visiting myinsuranceinfo.com, being scanned and sent via email to loanservicing@capfed.com, faxed to 785-270-6024, or mailed to the following address:
Capitol Federal®
ATTN: Loan Servicing Department
700 S. Kansas Avenue
Topeka, KS 66603
How should the mortgagee clause read for my property insurance policy?
The mortgagee clause should read as follows:
Capitol Federal® Savings Bank, ISAOA
Po Box 1967
Carmel, IN 46082
What is PMI?
PMI stands for "private mortgage insurance", and PMI makes it possible for you to buy a home with less than a 20 percent down payment. PMI is different from property insurance or other types of insurance because its purpose is to protect the lender against the risk associated with smaller down payments. The premium can either be paid upfront or included in the monthly escrow payment.
Can PMI ever be removed from my loan, and if so, when?
Yes. Generally PMI can be removed from a loan once the loan-to-value ratio is not more than 80 percent. For example, if the loan balance was $85,000 and the value of the home was $100,000, the loan-to-value would be 85 percent and PMI could not be canceled. But if the loan balance was $79,000 and the value of the home was $100,000, the loan-to-value would be 79 percent and the PMI could be canceled.
Certain restrictions apply with respect to cancellation of PMI. One such restriction is that the value of the home is calculated using the lower of the purchase price (if applicable) or original appraised value. An appraisal must be obtained to substantiate a higher value; county tax assessments cannot be used. For information on your specific situation, visit one of our branches or contact a customer service or loan service representative toll-free at 888-822-7333.
What do I do if I receive an insurance claim check made payable to the Bank and me for damage to my property?
In the event of property damage, it is important to work with a local lender as the repairs are being completed. Visit one of our branches or contact a customer service or loan service representative toll-free at 888-822-7333. When presenting an insurance check for endorsement, please bring copies of the insurance claim documentation and any other related information.
Please be aware that in certain situations, such as a loan with a high loan-to-value ratio and PMI, the need to make sure that the work is complete may preclude endorsement and immediate return of the check to you. Other restrictions may also apply.
NAME CHANGES
I recently changed my name. How can I change it on my mortgage loan?
Please forward to us a written request and a copy of the legal form (e.g., marriage license, divorce decree, etc.) documenting the change. The items can be forwarded to us in several ways, including being scanned and sent sent via email to loanservicing@capfed.com, faxed to 785-270-6024, or mailed to the following address:
Capitol Federal®
ATTN: Loan Servicing Department
700 S. Kansas Avenue
Topeka, KS 66603
I have recently divorced and was awarded the property in the divorce. Can I have my ex-spouse's name removed from the loan?
Yes. A person can be removed as a borrower on a loan through a process known as "release of liability". This process involves an application and evaluation of income and credit to ensure that the remaining borrower(s) has the financial ability to continue to make the payments. There is a fee for this service, although it is considerably less than the cost of a refinancing transaction, which can also be used to remove a borrower from a loan. For information on your specific situation, visit one of our branches or contact a customer service or loan servicing representative toll-free at 888-822-7333.
One of the borrowers on my loan is deceased. Can the name of the deceased be removed?
Yes. Please forward to us a written request and a copy of the death certificate. The items can be forwarded to us in several ways, including being scanned and sent via email to loanservicing@capfed.com, faxed to 785-270-6024, or mailed to the following address:
Capitol Federal®
ATTN: Loan Servicing Department
700 S. Kansas Avenue
Topeka, KS 66603
PAYMENTS
Payment can be accepted through:
- Postal Mail
- In-person at a Capitol Federal branch
- By Pre-authorized transfer
- Wire transfer
- Transfer from a Capitol Federal checking or savings account through the True Blue Online® banking service.
- “Cash advance” only, on a credit card
How can I change my automatic draft information?
To change a pre-authorized transfer, please contact us at least three business days before the scheduled transfer date. This lead time is required in the event the transfer is being originated from another financial institution, as the transfer request is sent prior to the date the transfer actually occurs. To change a pre-authorized transfer, please visit one of our branches or contact a customer service or loan service representative toll-free at 888-822-7333.
How can I stop or cancel my automatic draft?
To stop or cancel a pre-authorized transfer, contact us at least three business days before the scheduled transfer date. This lead time is required because the transfer request is initiated prior to the date the transfer actually occurs. To stop or cancel a pre-authorized transfer, please visit one of our branches or contact a customer service or loan service representative toll-free at 888-822-7333.
How can I obtain a payoff quote for my loan?
To obtain a payoff quote, please visit one of our branches or contact a customer service or loan service representative toll-free at 888-822-7333.
What if I lost my coupon book?
To request a new coupon book, please visit one of our branches or contact a customer service or loan service representative toll-free at 888-822-7333.
When are my payments considered late?
Capitol Federal mortgage and installment loans and Execuline home equity lines of credit allow a "grace period" of 15 days. This means that the loan payment must be received and posted by Capitol Federal within 15 days of the due date in order to avoid a late charge. In addition, adverse reporting to the credit repositories may occur if the payment has not been received and credited within 30 days of the due date.
MISCELLANEOUS
Can I access information about my loan online?
Yes. True Blue Online® banking allows you to view your loan and deposit accounts, and to make online transfers between those accounts. For more information or to obtain the temporary password required for enrollment, contact a customer service representative toll-free at 888-822-7333.
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