Mortgage Loans

Flood Insurance

Homeowners Insurance

Private Mortgage Insurance

Payment Changes

Shortages

Deficiencies

Overages

Adjustable Rate

Bi-Weekly

Construction Mortgage Loans

Modular Disbursements

Inspection

Construction Disbursements

Construction - Prorated/Supplemental

Repayment

Need More Time?

Consumer Loans

Home Equity Lines

Secured and Unsecured

Collateral

Payoffs

Payoff Telephone Inquires

Paperwork

Releases

Per Diem

Escrow Balance

Grace Days

Payment Assistance

Statement Questions

Bills

1098

Year End

Contact Us

M o r t g a g e  L o a n s

What determines how much goes into my escrow account?
The bank uses the current tax and/or insurance amounts to determine the escrow deposits for the coming year.

What would cause my taxes to increase?
The factors that impact the amount of your taxes are: Property re-evaluations; mil rate changes; or property improvements.

What is the mil rate?
The mil rate is the, per thousand of dollars, rate on which your real estate and personal property will be taxed.

Flood Insurance

If I escrow for property taxes do I have to escrow for Flood Insurance?
Yes.  If you escrow for your property taxes and you are required to have flood insurance, we have to also escrow for your flood insurance.

Why does the Bank require flood?
The bank is required, by Federal Law, to ensure the purchase and ongoing monitoring of flood insurance on all properties (on which we hold a mortgage/loan) that are located within a Special Flood Hazard Area (SFHA).

 Homeowners Insurance

How should Chelsea be listed as Lien Holder on Insurance?
Chelsea Groton Savings Bank
And/or Its Successors and Assigns, ATIMA
1 Franklin Square
Norwich, CT 06360-0151

What loans need to have Chelsea listed as Lien Holder?
Automobile, Boat, Homeowners (Mortgage, Home Equity and Home Equity Lines), Condo (Mortgage, Home Equity and Home Equity Lines), Flood (Mortgage, Home Equity and Home Equity Lines), Mobile Home, Motorcycle, Recreational Vehicle.

 Private Mortgage Insurance

What is Private Mortgage Insurance?
PMI (Private Mortgage Insurance) protects the lender in case the borrower stops making payments.  By having PMI it allows people to purchase a home without having the traditional twenty percent down or refinance without having 20% equity.

Why do I have PMI?
When you purchased your house, you did not have 20% to put down on the house, or when you refinanced, you did not have 20% equity.

When can I cancel PMI?  How can I cancel?
You should refer to your documents which outline your rights to request cancellation, or to obtain the date of automatic termination.  For specific questions call the Loan Servicing Department at 860-448-4137.

Payment Changes

My mortgage payment automatically comes out of my checking or savings account.  Do I need to change anything?
No, the new amount will be automatically deducted.  You will need to make sure that you have the available funds in your checking/savings account.

Shortages

How can I know that I will have a shortage in my escrow account if I haven’t received any notification that my taxes increased.
Contact your town Tax Collector or the town Assessor for the new tax amounts, the town should have the new amount (if the budget has been passed) by June 1.

Deficiencies

Why is my account deficient, what does that mean?
When the actual tax bill came in it was higher than what we projected to pay.  This causes the account to go into the negative.

Overages

If I paid more into escrow than what was needed to pay the taxes or insurance do I get the money back?
Yes, a refund is issued after the account goes through its annual Escrow Analysis in August, if the overage is $50.00 or more. Otherwise it is spread out over the next 12 months.

Adjustable Rate

What is an adjustable rate mortgage?
An adjustable rate mortgage, commonly referred to as an ARM, is a loan type that allows the lender to adjust the interest rate during the term of the loan.  Generally, these changes are determined by a margin and an index so that the interest rate changes, up or down, are based on market conditions at the time of the change.  Most often these interest rate changes are limited by a rate change cap and a lifetime cap.  If you apply for an adjustable rate mortgage, the lender is required to provide you with an ARM Program Disclosure which spells out the terms of the loan.

Bi-Weekly

Is a Bi-weekly actually paid twice a month?
No. A Bi-weekly mortgage is due every other week with a grace period of 5 days.

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C o n s t r u c t i o n

Who can I contact with more Specific Questions?
Please refer to your Construction booklet you received prior to closing or feel free to contact Loan Servicing at 860-448-4136.

Modular Disbursements

How does money get disbursed for a modular home?
First the Assignment of Proceeds form must be signed by borrowers, witnesses, modular company, and our Bank representative.  Then, when the borrowers schedule an inspection, our Bank inspector goes to the site to see that the modular is set, bolted to the foundation, and made weathertight.  After the Bank inspector verifies the work is done, the authorized money will be wired to the modular company assignee.

Inspection

How do I get an inspection?
To schedule an inspection please call 860-448-4136.

Construction Disbursement

How does a construction disbursement work?
Construction mortgages work similar to a line of credit. At closing you may be disbursed a certain amount for the land and any work you completed prior to closing. After closing you will be required to call the bank for an inspection. Upon receiving your call, the Bank Inspector will go out to look at the work that is completed and then report back to the bank. Then the bank will disburse additional funds based on the percentage of work completed.

Construction-Prorated/Supplemental

I received a pro-rated bill from the Town, who is going to pay this?
Pro-rated bills are usually generated by the town after your construction is completed and you have received your Certificate of Occupancy.  These bills are usually your responsibility, and it is always recommended that the customer use any surplus escrow that was returned to them after Escrow Analysis towards that payment.  Call 860-448-4135 with specific questions.

Repayment

Why is my first payment so high?
The first payment might be high because it covers the Interest and Escrow from the closing date until the end of the next full month.

When will my mortgage be transferred to permanent?
In most cases your construction period is for the first twelve months.  Your payments will be changed to principal and interest after all your money has been disbursed.  If your construction stays on schedule, ideally your mortgage will be transferred to permanent on your thirteenth billing cycle.

Need More Time

What if I need more time for the Construction Period?
Contact the Loan Servicing Department at 860-448-4136 if you feel an extension will be needed.

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C o n s u m e r   L o a n s

Home Equity Lines

What is the different between the 2% product and the Interest Only product?
The 2% product requires a principal reduction each month of 2% of the outstanding note balance or a minimum payment of $100.00 dollars.  With the Interest only product, you are only required to pay a monthly interest payment for 9 years and 8 months and then your draw period ends and you make principal and interest payments.  You are allowed to make additional principal payments, at any time, for both loan types.

How can I access my Line of Credit?
With special checks that are issued at the time of closing.  The checks can also be cashed at any branch.  The minimum amount of the check has to be at least $500.00.  It is highly recommended that you make the HELOC check out to yourself and deposit it in to your regular checking account because we cannot stop payment on the check if it gets lost or stolen. 

How do I order more checks?
They can be ordered by calling the Consumer Loan Department at 860-448-4140.

What do I do if I want to close out my loan from future borrowing?
Please put in writing that you would like to close your account. We will need the unused checks returned at the time that the loan is closed. 

How will I pay the annual fee?
The annual fee is added to your principal balance on your 13^th billing cycle and yearly thereafter.  Please refer to your note for the specific dates.

Can I pay my loan to a zero balance and leave it open?
Yes, this is called a pay down.  At anytime during your term you may pay down your balance to zero and leave it open for future use. 

When will I be assessed a late charge on my account?
The late charge will be assessed on the 25^th of every month.  The fee is equal to 5% of the total payment due with a minimum late charge of $25.00.

Secured and Unsecured

Can I pay off my loan early?  Is there a prepayment fee?
You can payoff the loan as soon as you would like.  There is no prepayment fee. However, there is a minimum interest payment of $50.00.  Please refer to your note for specific conditions.

With the funds from my unsecured loan if I purchased a car, does Chelsea Groton need to be listed as Lien Holder?
No, the use of the loan funds does not matter; it is still considered an unsecured loan.

Do I have to receive coupons?
No, if you would like to receive a statement every month you can request that.  If you would like to have an automatic payment you can.  With automatic payments you will not receive anything (Statements, coupons).  To request this, please call either your loan officer or Loan Servicing at 860-448-4133.

Collateral

Can I pay on my principal?
Yes, any payment toward principal will reduce the balance and therefore reduce the amount of Interest paid.  The Interest is based on the balance, number of days in the billing cycle, and the Interest rate.

If the rate changes on the savings account or CD being used as collateral, will that change the rate on my CD?
Yes, the rate on your loan will be 3% higher than the rate on the accounts being held as collateral.

How is the rate determined on my Stock Collateral Loan?
The interest rate for Stock Collateral Loans is based on the Wall Street Journal Prime Rate, plus a 1% margin.

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P a y o f f s

What is the difference between the principal balance & the payoff balance?
The principal balance or note balance is the original amount borrowed minus the principal portion of your regular payments and any payments made directly to principal.  The payoff amount includes the current principal balance, interest due through the expected payoff date, any late charges due (or that will be assessed by the expected payoff date), any escrow funds that may be due, or any prepayment penalties that may apply.

Where do I go to payoff my loan?
You may go to any Chelsea Groton Branch to payoff your loan. 

Where do I mail my loan payoff?
Chelsea Groton Savings Bank
Attn: Loan Servicing
904 Poquonnock Road 2^nd Floor
Groton, CT  06340

The address above is also acceptable if you want to overnight the payoff to us.

Payoff Telephone Inquiries

How do I obtain a payoff on my loan?
Chelsea Groton Bank will quote payoffs over the telephone to any owner of the account after verifying identification.  Any other payoff quotes (to attorneys, other banks, or dealerships) will be processed upon receipt of your signature on a general authorization, or with your verbal okay.  Once requested they are faxed to the requesting party within 24 hours.

Paperwork

How long will it take to receive my paid paperwork?
If the loan is paid with cash or with a check drawn on a Chelsea Groton Bank account, or an official bank check the paperwork can be mailed the next business day upon request.  Otherwise, the paperwork will be mailed back to you 10 business days after the payoff is received.  This allows ample time for a check to clear other institutions.

Releases

A lien is still showing up on my property.  How do I get it released?
Usually you find out about an old lien when you go to sell your property or refinance your property.  To get the lien released we will need a copy of the title rundown on your property.  The title rundown has us listed as mortgagee, the date the loan was opened, and the volume & page the mortgage is recorded in.  This information is needed to prepare a release of mortgage.  There will be a duplicate release fee required.  The closing attorney’s office or the other bank you are refinancing with should have the above information.  If they do not it can be obtained from the town in which your property is located for a small fee.

The DMV is telling but Chelsea Groton is still listed as lien holder on my title, my loan is paid off.  How do get Chelsea Groton to release the lien?
You will need to provide us with your VIN number, the year, make, and model of your vehicle.  To research whether the loan is paid off or not, it would be helpful if you had the loan #.  After obtaining the above information, we will issue a Satisfaction of Lien Letter which can be taken to the DMV to have the lien released.

Per Diem

What is per diem?
Per Diem is the daily interest charged on a loan.

Escrow Balance

What happens to the money I have in escrow once my loan is paid off?
The escrow balance will be returned to you upon payoff of your mortgage.  The check will be mailed back to you with your paid paperwork.  Any escrow items due or outstanding will be paid prior to sending you a refund.  An exception to the above process is if you refinance your current loan with us to a new loan with us then the escrow balance will be returned as part of the closing funds at settlement.

Grace Days

How many grace days does my loan have?
Typically, a mortgage comes with a 15-day grace period.  A bi-weekly mortgage has 5 grace days.  All consumer loans have a 10-day grace period.  If the last day of the grace period falls on a Sunday or a holiday and the Bank is closed you will have the following business day to make the payment.  For the exact answer please refer to your Loan Note.

Payment Assistance

What should I do if I have a problem making my payment on time?
You should contact our Collection Department and speak with a Collection Representative.  These team members are skilled professionals who will listen and suggest ways to assist in resolving your financial situation.  Contact 860-448-4153 to be connected to a Collection Representative.

What do the Collection Representatives do?
It is the responsibility of the Collection Representatives to communicate with delinquent customers and reach an agreement for bringing past due payments up to date and make future payments on time.  A Collection Representative will provide financial counseling and suggest ways and means for customers to rectify their current financial situation.  Maintaining customer dignity and confidentiality is paramount.

How can I get a list of property that has been foreclosed or repossessed?
Once property is owned by the bank either through judicial foreclosure or repossession we can make this information available to the public.  You may contact the Collection Department directly at 860-448-4153 fax an OREO List.

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S t a t e m e n t   Q u e s t i o n s

Bills

When will I receive my bill?
The statements are created for loans 12 days prior to the due date.  At that time the bills will be mailed to you.  All Heloc’s (Home Equity Line of Credit) statements are generated on the 5^th of the month.
If there is an allotment (automatic payment) set up on the account you will not receive a bill. 

1098

Why did I receive a 1098 statement?
This is an IRS form that shows how much the customer has paid to the Bank in Interest.  In order to have a form generate there has to be a minimum of $600.00 interest paid. We send this statement out on all loans secured by Real Estate and some boats (must have a galley and a head).  The IRS code requires that they are sent out by January 31^st.

Year End

Why did I receive a Year End Statement?
These are sent to the customers to provide them with an annual accounting of their loan.  We mail ALL Commercial Statements, All Mortgage, All Home Equity and HELOC.  All others can be mailed upon the customer request.  To obtain an additional copy of the current years Year End Statement there is a $5.00 per page fee.  For prior years there is a $5.00 per page fee and a research fee may apply.

Servicing Our Loans

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 C o n t a c t   u s

Q u i c k   R e f e r e n c e

Escrow - 860-448-4135
Construction - 860-448-4136
Allotment (Automatic Payment) - 860-448-4133
Re-Amortization - 860-448-4132
Private Mortgage Insurance - 860-448-4137
Payoffs - 860-448-4138
Fax Machine - 860-448-4139