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I remember that when I first bought my home, it was almost a month and a half before I made my first payment. When I refinance, will I get to skip a payment?

2007-02-06 13:00:34 · 8 answers · asked by Anonymous in Business & Finance Renting & Real Estate

8 answers

Refi's and purchase transactions work the same.

The reason you get to skip a month is because of how payments are accounted for during the month of closing compared to each month thereafter.

During the month you close your loan, you pay interest on your mortgage from the day of closing through the end of the month (for the CURRENT month). Every month thereafter, your mortgage payments are applied to the PRIOR month.

Example, let's say you close on 3/15. For the month of March you would pay at closing the mortgage interest from 3/15 through 3/31. When April 1 arrives, you owe nothing since you've already paid the interest at closing for the month of March - therefore your next payment is due on May 1 which means you get to "skip a month." In a sense it's just an accouting trick...

2007-02-06 13:27:43 · answer #1 · answered by Anonymous · 0 0

Hey

Yes you will. But technically you do not skip the payment most mortgage brokers use this as a marketing tactic . It is just automatically paid, so you do not have to make the payment, most cases. My name is Humphrey Mitchell. I am a mortgage banker here in New York and I wanted to know if you have already been qualified for the type of mortgage program. We have programs for 100% financing with a credit scores as low as 580. We have been in the industry for over 15 years. I can help you get the best rate and the right program. If you already have a banker great too...I welcome the opportunity to beat his rates and programs. Hope to speak with you shortly you can reply to this message or give me a call directly at (917) 337 8670. Hope all is well and Good Luck!

Cheers,

Humphrey
------------------
Humphrey Mitchell
Co-Chairman/CEO

Turbo Financial Inc.
303 5th Avenue Suite 1809
New York, N.Y. 10016

Cell: (917) 337- 8670
Phone: (646) 492-0922
Fax: (212) 213 - 1257

Licenses mortgage bankers in NY, NJ, CT, CO, MD, IN and FL. We are direct lenders.

2007-02-06 13:33:22 · answer #2 · answered by REALTY EXPERT 1 · 0 0

Refinancing usually builds in prepaid interest for the first month, so you will get to skip the payment. I have refinanced four or five times over the years and have skipped a payment each time.

2007-02-06 13:08:49 · answer #3 · answered by Brian G 6 · 0 0

Yes you can. But if you close in the first 3 -5 days of the mouth your first payment will be due the next mouth.

2007-02-06 15:17:17 · answer #4 · answered by s_uperdave 3 · 0 0

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2016-12-17 04:09:15 · answer #5 · answered by kull 4 · 0 0

I'm interested in this

2016-07-28 08:20:15 · answer #6 · answered by ? 3 · 0 0

very interesting question

2016-08-23 17:16:25 · answer #7 · answered by Anonymous · 0 0

No.

2007-02-06 13:03:33 · answer #8 · answered by God's_gift_2_women 1 · 0 1

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