My mortgage payment will be officially 30 days late on the 30th of this month. My new loan to refinance this loan funds on the 2nd of next month. The payment is about $4600. Should I pay it and Not have a mark on my credit or lose the $4600 (interest) and keep my Excellent Credit standing. By the way my credit is mid score 750.
2006-09-27 08:12:43 · 12 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
1) You are not "losing" the $4600. You owe them that even if/when your refinance-- but it would be rolled into your new loan.
If you have sterling credit one thirty day late wont kill you, but it could drop you 10-20 points. You'll regret it!
Also, your payment may be $4600 but not all that is interest-- see if you can call them and pay the interst only (not taxes, insurance and principal) and not get a late payment-- they might work with you.
2006-09-27 08:30:20 · answer #1 · answered by Anonymous · 1⤊ 0⤋
As a mortgage broker, you can imagine we hear this all the time. The interest due on your old loan is calculated on a daily basis and paid in arrears. This means you owe the interest for September no matter what. If you don't pay it yourself it will be part of your payoff figures. You will not double pay or lose interest. Given that it's so late in the month and you are close to closing, if you don't pay your payment right away, your check may not clear and your old lender will still ask for it in their payoff figures. Of course, they must refund if they collect twice but that can take up to 30 days. To protect your credit, pay it right away and in a branch if you can. If you use certified funds, your payoff demand should then be up to date and you won't have to float that interest while waiting for the refund.
Hope you're getting a good rate. If you need additional assistance, let me know via: http://www.slarson.com/contact or steve@slarson.com
Regards
Steve Larson
2006-09-27 09:12:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
So your closing your loan on the 27th of this month, and paying out on the 2nd of Oct. - If you pay your payment chances are your loan pay-off collected at closing won't reflect that payment. It's up to you how you want to handle it and if you have the extra $4600.00 to pay. The lender being paid off would refund you the $4600.00, but it may take quite a while to get it back, sometimes 6 - 8 weeks. If this is the only thing your paying late, I don't think it's going to hurt you and can be explained if necessary to clear up any credit question. Contact the bank your paying off and see what they say about this. If they are being paid off they may no report a late payment. Good luck
2006-09-27 08:20:12 · answer #3 · answered by Kathleen M 4 · 0⤊ 0⤋
pay your mortgage payment. depend off your pay off amount for the mortgage you going to refinance- some of the money will be returned to you from the old lender, but it is not worthy to have 30 days late. this late payment will sit on your credit for 4 years and it is hard to say how this will affect your credit score.
2006-09-28 11:40:02 · answer #4 · answered by bianca 4 · 0⤊ 0⤋
Your new mortgage will not happen if you are in arrears on your current mortgage. Since the current mortgage will not release the first lien position, due to you owing them funds, the new mortgage company will refuse to pay off the current mortgage.
You ahd better get this worked out between the 3 parties, or there will be no closing.
2006-09-27 08:28:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Call the lender & explain. Depending on their internal systems they may be able to put a note on the file about the impending payoff so it will not generate a late notice.
2006-09-27 08:19:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋
funds are not any further considered "late" till they are 30 days previous the due date. late loan funds are truly negative to credit ratings, and the better recent they are, the better negative they are. Writing letters to the credit bureaus gained't make any vast difference. in the adventure that they are definitely late, the merely project that could actually help is the passage of time. i do not comprehend of any quantifiable "style of issues" that it hurts your score - even though it does damage.
2016-12-02 04:41:58 · answer #7 · answered by ? 4 · 0⤊ 0⤋
they will just charge a late payment to the payoff of the new loan
2006-09-27 08:20:34 · answer #8 · answered by rich2481 7 · 0⤊ 0⤋
Pay it! You will owe the money, and end up paying it, no matter what. (They may tack it onto your closing costs, or the new bank may collect it later.) Keep your credit rating good.
2006-09-27 08:22:01 · answer #9 · answered by rainfingers 4 · 0⤊ 0⤋
PAY!!!! you pay it anyway in equity in closing. Plus a mortgage late will screw you for 36 months for another refi
2006-09-27 10:39:31 · answer #10 · answered by cjkloanguy@yahoo.com 2 · 0⤊ 0⤋