A certificate of mortgage discharge must be provided by the mortgagor or its designee within thirty days of payoff. NYS Real Property Law 275. Under guidelines established in 1997 by the Department of Housing and Urban Development, lenders and servicers can require monthly escrow contributions equal to one twelfth of the total property tax, insurance premiums and other charges agreed upon. I don't understand simple interest loans. Simple interest computation is a method widely used in the mortgage industry for calculating interest charges.
Interest is calculated on the actual principal used by the borrower without compounding.
Payments are applied to interest first and then to principal. Bankers and mortgage lenders are required to provide documents to applicants within three days. At closing there are so many documents. A document called a HUD-1 shows the actual charges imposed on borrowers and sellers in connection with the mortgage. A borrower is allowed to review the HUD-1 one day before the actual closing.