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Allegheny Settlement Company
FAQs for Refinancing

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FAQs for Refinancing
Who will explain my Mortgage paperwork?
What is an Escrow Account?
Am I entitled to a discount on the Title Insurance?
How do I get paid?
What kind of check am I going to receive?
What is my payoff?
Why is there an overnight courier fee?
How is my payoff obtained?
How is my Mortgage satisfied on the public record?
What if I get a tax bill or homeowner's insurance bill after the closing?
What if my Mortgage payments are automatically deducted?
What happens to my escrow account?
What do I need to bring to my closing?


Who will explain my Mortgage paperwork?
We will! If you are one of "those people" who need to read paperwork thoroughly and/or ahead of time, be sure to let us know. Whenever possible, we'll deliver the paperwork to you early, so there are no surprises at closing.

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What is an Escrow Account?
Escrow account means "somebody else's money." The funds for your loan are deposited into our escrow account. We deposit your check into our escrow account. After the closing, we pay, or "disburse," all the items from the settlement statement from the escrow account. It is a non-interest bearing account. Your Lender may also have an escrow account for you. If your Lender has an escrow account, then each month, your payment will include 1/12 of the property taxes and homeowners insurance. This 1/12 is deposited into your escrow account. Each year, as the property taxes and your homeowner's insurance bills are due, the Lender will pay them from the escrow account you have with them.

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Am I entitled to a discount on the Title Insurance?
Perhaps. If you purchased the property within the last ten years or if you refinanced recently, you may receive a discount. You must also have your Title Insurance Policy. It is your responsibility to obtain this information and provide it to us before the closing. We will never ask you for it.

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How do I get paid?
If the purpose of your refinance is to obtain cash, then we will send the check to you after your rescission period expires.

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What kind of check am I going to receive?
You will receive a check from our escrow account. This is not a cashier's check and it is not a certified check, either. After you deposit it, it may take more than one day to clear your bank.

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What is my payoff?
At closing, we collect the amount to pay your Mortgage in full. This is called your "payoff." Typically, people are surprised to see that their payoff amount is greater than what they were expecting. That's because when you called your Mortgage Lender, they told you the principal balance but they left out the daily interest that adds to the principal balance.

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Why is there an overnight courier fee?
As you know, interest is adding to your payoff on a daily basis. By sending your payoff via overnight courier, we can be sure that your payoff is delivered and we can prevent unnecessary interest from accumulating. Our overnight mail fee is $13.50.

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How is my payoff obtained?
Initially, we will ask you for information about your Mortgage, including your account number and social security number. Then we will attempt to obtain payoff information from your Mortgage Lender. If the Lender refuses to provide us with the information, we will contact you for a written authorization.

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How is my Mortgage satisfied on the public record?
After your Mortgage loan is paid in full, your Lender will stamp "paid-in-full" on your original note and Mortgage. They will send the note directly to you. If they send the Mortgage to you, then forward it to us. Once we receive the Mortgage, we will deliver it to the county Office of Recorder of Deeds, who will indicate on the public record that your Mortgage has been satisfied.

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What if I get a tax bill or homeowner's insurance bill after the closing?
If you have an escrow account, send it to your Lender immediately. If you don't have an escrow account, it is your responsibility to pay the bill.

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What if my Mortgage payments are automatically deducted?
You must call your Mortgage Lender immediately and request that they cease the automatic deduction.

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What happens to my escrow account?
Most Lenders will refund the balance of your escrow account within three weeks from the date the payoff is received. In rare circumstances, Lenders apply the escrow balance to your payoff, thereby reducing your payoff figure.

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What do I need to bring to my closing?
1). Bring your driver's license or some other form of identification. The closing officer will need to prove your identity so he/she can notarize your signatures on many of the documents.
2). If you haven't met all the Lender's conditions, bring any additional documentation they require.
3). If you haven't already provided proof of homeowner's insurance, bring your declarations page. Be sure to let us know whether you've already paid your first year's premium.
4). Don't forget the check for your funds needed to close, if any!

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Questions? Contact Allegheny Settlement Company, Inc.