We just bought a new house and we just signed all the papers with the lawyer and they informed us that March 1st 2007 is when we make our first payment, but why? Why 3 months with no payment? We live in Alberta, Canada
2006-12-08 03:14:15 · 5 answers · asked by sexylittlemisstweetybird83 5 in Business & Finance ➔ Renting & Real Estate
Review your (Promissory Note) Mortgage Loan Docs carefully....you may have already paid a few months of the note at closing!!! That is usually why people think they get a break till the 1st payment is due, but it's rolled into closing costs so it's really NOT but it appears that way.
2006-12-08 03:39:27 · answer #1 · answered by lucy 3 · 2⤊ 0⤋
Although I am not a broker in Canada, there is generally an interest credit figured into all loans. So in reality, you have already made those payments. You should have some sort of settlement statement from the home closing. Look on it for a pre paid interest credit or per diem interest starting from the funding date of the loan through a specific time- most likely in February according to your question. However, it will never hurt you to make your payments early. You actually do yourself a good service by doing this as the interest on your loan is amortized daily based on that days principal balance. When you make your payments early, there is less principal for that interest to amortize on, thus you will shorten your amortization schedule and pay off your loan early.
2006-12-08 12:27:29 · answer #2 · answered by flamingojohn 4 · 1⤊ 0⤋
Well I am a Mortgage Broker in the state of Indiana, and that seems a bit much. In the 5 state that I can write mortgages in, all of them give you 45 days till your first payment, or a month and a half. It could be that whoever holds your note was doiong a season special when your loan was put threw, but to play it safe I would contact the company who holds the note. They will be able to tell you if this was supposed to bethat way, or if it was a misprint in the paperwork.
Congrats on the new home, and good luck!
2006-12-08 11:22:05 · answer #3 · answered by 4thmonkey 1 · 3⤊ 0⤋
There are new programs that provide 3 months with no payments. This is calculated into the loan.
Here is some additional info. Hope this helps.
2006-12-08 13:06:47 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Hey if you want to pay I am sure they will n ot reject your money. Other than that I would not fret. Save the cash for somthing else like a holiday.
2006-12-08 11:25:26 · answer #5 · answered by jen 4 · 0⤊ 1⤋