Posted on: 09th Sep, 2010 12:59 pm
For example, I'm closing on Oct 6, my first mortgage payment isn't until Dec 1. This seems like I am rolling in my mortgage payment into the loan, I would like to simply write a check for the Oct mortgage payment and the Nov payment.
Welcome brentmatthews,
You should contact your lender and check out whether or not your monthly payments for the months of October ad November have been included in your mortgage. Depending upon what your lender says, you can offer him the monthly mortgage payments for the month of October and November through check.
You should contact your lender and check out whether or not your monthly payments for the months of October ad November have been included in your mortgage. Depending upon what your lender says, you can offer him the monthly mortgage payments for the month of October and November through check.
If you close on October 6, at closing you pay for the old loan through October 6 and the new loan to October 31.
You start owing money for the new mortgage on November first. Interest is paid in arrears, so the first payment due on the new mortgage is due 30 days later on December 1st.
The October payment is being paid at closing. Only one month mortgage payment is being paid at closing and that is only for the interest due on the two mortgages, each of which you have for part of the month, but, you have a mortgage the entire month split bewteen the old and the new.
You start owing money for the new mortgage on November first. Interest is paid in arrears, so the first payment due on the new mortgage is due 30 days later on December 1st.
The October payment is being paid at closing. Only one month mortgage payment is being paid at closing and that is only for the interest due on the two mortgages, each of which you have for part of the month, but, you have a mortgage the entire month split bewteen the old and the new.
Agreed...what John has provided you is correct. You are not restricted from making payments until December, of course, but you will likely run into a quagmire if you try to do so. Lenders' new loans don't make it into their servicing departments right away, and if there is a sale in the works from one lender to another, that'll slow things even more.
Your smartest move, to avoid confusion and frustration on your own part, is to wait until the December 1 payment is due, make it on December 1 if you're ready to do so, and move forward from there. If you wish to make any payments prior to their due date, it is definitely allowable and most beneficial to you. The interest you pay by prepaying (I'll also assume you're planning to add some extra dollars to your regular payment amount) the principal balance will result in reduced interest costs over time.
Your smartest move, to avoid confusion and frustration on your own part, is to wait until the December 1 payment is due, make it on December 1 if you're ready to do so, and move forward from there. If you wish to make any payments prior to their due date, it is definitely allowable and most beneficial to you. The interest you pay by prepaying (I'll also assume you're planning to add some extra dollars to your regular payment amount) the principal balance will result in reduced interest costs over time.
