“How am I going to manage my payments this month? School fees are due and I still have to pay for Papa’s surgery,” Sasha spoke aloud. “I know. I won’t pay my NHT mortgage this month. My refunds can take care of that and give me some room to breathe.”
Not quite so! Perhaps you are in the same position as Sasha and you would like to use your NHT refunds to pay your mortgage this month. However, the mortgage agreement you have with the NHT does not allow you to use your contributions refund as a regular mortgage payment. If you have an NHT mortgage, the NHT’s policy is to credit the refunds due to you, to the principal balance of your loan early.
But what happens if you are behind in your payments and would like to use your refunds to clear the arrears? Assistant Loan Manager at the NHT, Suzanne Wynter Burke says, “Though this was not the original purpose of the refund, where the loan is in arrears, the NHT will use the refund to clear it. But mortgagors will still have to pay any late fees incurred up to the time the refund is credited.” She therefore advises mortgagors to continue making their payments no later than the 15th day of each month even if they know that the 15th day of each month even if they know that the NHT has a contribution refund for them. If mortgage payments are made after this date, the account will attract a late fee.
Persons who have an NHT loan don’t have to apply for their contributions refund. Once they are due a payment, the NHT will automatically credit the refund to their account. While the NHT may send the funds to the account at anytime during the year, the payment is retroactive to January 1 of the year it is due. Mortgagors will see the refund on their end-of-year statement from the NHT.
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