Most of us have mortgages on our property and have to make payments on a regular basis. There are various methods by which borrowers can make payments. Each of them has their own pros and cons. Let's take a look at the various mortgage payment methods available to the borrowers:
Automated withdrawal:
Automated withdrawal is one of the easiest methods to make payments toward the mortgage. This is a simpler and convenient method as you won't have to take any further action once you set up the payments in the loan servicer's system. The mortgage payments are credited quickly and payment records are also produced. Thus, you will have the proof that the payment has been made. However, the negative point of this payment method is that you won't be able to change the date of the mortgage payment as per your wishes. If you don't have enough money on the date of payments and the withdrawal bounces, you will be liable for overdraft fees.
Online payment:
One of the best options to make mortgage payment is through the bank's or loan servicer's website. The online payment process allows the borrower to control the timing of the payment. If you use the online payment option, then you will also be able to create a traceable record of your payment. Online payments are efficient and usually free. It won’t take much of your time to set up the online payment option. Once you set up the payment plan, you only have to go to the website every month, enter the amount and hit enter to complete the process. Even the mortgage lenders prefer this option of making payments toward the home loan.
Sending check through mail:
Many of the borrowers even use the method of sending a check via the U.S. Postal Service and it still works fine. If you use this method, you will be able to keep a track as to when you mailed the mortgage payment and you'll have a record of the check once it's cleared. You won't have to worry about technical difficulties as most servicers provide pre-printed envelopes and payment coupons. However, a disadvantage of this payment method is that there is a risk that your check may be lost in the mail. Apart from this, you'll have to pay for postage stamps as well. If you use this method of payment, make sure that you write your loan account number on any paper check, even if the number is printed on your coupon. Checks that turn up without a coupon or loan number can be problematic.
Phone call:
Another option to make the mortgage payment is to call the loan servicer and speak to a customer service representative who can enter your mortgage payment into the processing system. The telephone number will be mentioned on the monthly statement. It should be noted here that payments made by phone usually can be credited immediately. The disadvantage is that there are some servicers who charge a convenience fee for this option. Apart from this, transactions through cellphone can be disconnected due to technical problems.
You can choose any one of these options and make your mortgage payment.