Frequently Asked Questions

Purchase and Refinance Questions

Why is refinancing a good choice?

There are multiple factors that influence if refinancing is right for you. A great first step is to consult a licensed, experienced loan expert before making a decision. Whether it is taking advantage of lower interest rates, consolidating debt or reducing your term—your Towne Mortgage team can help to determine is refinancing is the best choice for you.

Call us at (888) 778-9700 today to discuss your situation and help you decide whether or not refinancing is the best option for you.

What are the advantages of buying vs. renting?

There are many financial benefits to owning your very own home, some of which include:

  • Building equity
  • Mortgage interest tax deduction
  • Property tax deduction
  • Capital gains exclusion up to $250,000

Because of these financial benefits, long-term it is often less expensive to own a home than it is to rent.

If you’re considering financing a home, call us at (888) 778-9700 and let the loan experts here at Towne Mortgage walk you through the process and answer any questions or concerns you may have about home ownership.

How often do interest rates change?

Mortgage rates can change daily, sometimes even multiple times within the same day. Why? Because there are many factors that determine interest rates, the most significant being simple supply and demand. When the demand from borrowers increases, interest rates respond accordingly. When demand decreases, the opposite occurs. Fiscal policy and inflation also contribute to changing interest rates. We think you’ll find our rates very competitive.

What does this mean for you? With rates at historical lows, you’ll want to act fast if you’re considering buying or refinancing a home. Call Towne Mortgage at (888) 778-9700 and let us lock in your rate today.

What documents will I need to secure a loan?

A list of documents you may need throughout the loan process is available here.

However, it is best to consult an experienced mortgage professional to determine a complete list of documents you will need in order to secure home financing.

Call Towne Mortgage at (888) 778-9700 to speak with one of our licensed experts today.

What is an appraisal?

An appraisal is a valuation of a property, completed by a qualified professional, who inspects the home to assess the size, condition, functionality and quality to determine value. The appraiser will then research comparable homes in the area to decide the fair market value of the property.

How is an appraisal different than a home inspection?

An appraisal is a valuation of a property completed by a qualified, third-party professional. Neither the buyer nor the seller may participate in the appraisal and the ultimate goal is to determine the fair market value of the home.

A home inspection involves the extensive examination of a property by a qualified, third-party professional. Unlike an appraisal, home inspectors are hired by the buyer and he/she is encouraged to participate in the process. The ultimate goal is to ensure the buyer’s investment is protected by avoiding unexpected repair costs upon closing.

What is a FICO score?

A FICO score is a credit score issued by the Fair Isaac Corporation. Scores range from 300 to 850. The following factors are considered when determining credit scores:

  • Late payments
  • Length of credit history
  • Credit Utilization
  • Length of time at present residence
  • Bankruptcies, charge-offs, collections, etc.

Federal law entitles you to one free copy of your credit report each year. Visit www.annualcreditreport.com to request a copy of your report today.

What if there is an error on my credit report?

It is important to closely monitor your credit report to ensure all information is accurate. Federal law entitles you to one free copy of your credit report each year. Visit www.annualcreditreport.com to request a copy of your report today.

If you believe there is an error on your credit report, click here for instructions on filing a dispute.

If you believe there is an error on your credit report associated with Towne Mortgage Company, please contact our Servicing Department at (800) 979-9977.

Can my loan be sold?

Yes. Your mortgage loan can be sold at any time by the company currently holding it.

There is a secondary mortgage market where lenders frequently buy and sell pools of mortgages, resulting in lower rates for consumers. When your loan is sold, the new lender assumes all terms and conditions of the original loan.

In the event your loan is sold, you will be notified. The new lender will provide you with all contact information as well as payment instructions.

If you are currently a Towne Mortgage customer and your loan has been sold to a new lender, or your loan was not originally serviced by Towne Mortgage, but has been recently acquired by our organization and you have any questions or concerns, please contact our servicing department at (800) 979-9977.

How will my monthly payments be calculated?

Most monthly payments are based on four factors: principal, interest, taxes and insurance.

  • Principal:The amount, before interest, taxes and insurance, borrowed to purchase a home.
  • Interest:Interest is charged based on current market rates. Interest rates have a direct on your monthly payment. Lower interest rates result in lower monthly payments and visa-versa.
  • Taxes: Real estate taxes are due once each year; however, the expected amount is often divided in 12 increments, combined with your mortgage payment, placed in escrow and later applied to your annual tax bill. Borrowers may opt out of placing these funds in escrow, instead paying their taxes in one lump sum.
  • Insurance:Both homeowners and mortgage insurance fall into this category. Homeowners insurance covers damage to your home or property, while mortgage insurance protects the lender in the event of default. Mortgage insurance is a requirement for borrowers with less than 20% equity in their home.

Still a little confused? That’s okay. We’re here to help. Call us at (800) 979-9977 with any questions or concerns you may have about how your mortgage payment is calculated.

What is an Annual Percentage Rate (APR)?

The Annual Percentage Rate, or APR, is the annual amount charged for taking out a loan, expressed as a percentage of the principal, including any lender or closing costs as well as any additional fees. Lenders are required to disclose APR, along with all other relevant terms of the loans they provide, as a result of the Truth in Lending Act.

For more information regarding APR rates, please call our Customer Service Department at (800) 979-9977.

Servicing Frequently Asked Questions

What are the hours of operation?

Monday – Friday 7 am – 8 pm EST
Saturday 8 am – 1 pm EST

What are the methods of payments we accept?

Pay online using Manage my Account
Pay by Phone
Pay by Mail
Ach-Automatic Withdrawal

What is the payment address?

Towne Mortgage Company
P.O. Box 30843
Lansing, MI 48909-8311

What is the overnight or other correspondence mailing address?

888 W. Big Beaver Rd., Suite 310
Troy, MI 48084

How do I make a phone payment?

Call our servicing department at 800-979-9977, one of our representatives would be happy to assist you with processing a payment from one of your banking accounts.

I am an insurance agent and I need to verify the mortgagee information.

Our mortgagee information is:

Towne Mortgage Company ISAOA, ATIMA
PO Box 7063
Troy, MI 48007-7063
Attn: Servicing Loan Number: Insert Here

I need to speak to someone in Collections/Foreclosure/Loss Mitigation.

Please call us at 800.979.9977 and follow the prompts, or email us at loss.mitigation@townemortgage.com.

How do I request a payoff letter?

If you are a third party you can email payoff.discharge@townemortgage.com and include the borrower’s authorization.

If you are a borrower inquiring on the status of your escrow refund check after payoff, please note all refunds will be issued 14 days after the payoff date. If you have additional questions please call 800-979-9977 and press 2 to be directed to a Customer Service Representative.

I have additional questions.

Please call us at 800.979.9977 or email us at csr@townemortgage.com.