Do I have to make the last payment on my condo mortgage?

Question

The closing date of my condo sale is January 4th, and my next mortgage payment is not due until the 4th as well. It is an interest only loan, so there is no principle involved in the payment.

Answer 1

Pay it in December if you want the interest deduction in 2007. I would pay it early so they don't charge the back interest at closing. If you pay it on the 4th and they called for the pay off amount on the 3rd you will end up with less at closing and have to wait for the refund.

Answer 2

Since interest is paid in arrears, the amount you owe on the 4th won't change. Better be safe than sorry! You might even want to pay a little early so that when the title company (or whoever is closing your loan) calls for the pay off your payment is reflected.

Answer 3

Yes, make your last mortgage payment or risk the chance down the road if you do miss a payment later that it won't comeback to haunt you. It doesn't matter what type of loan you have and did you realize you may have a balloon payment come up out of nowhere later down the road as well?

Answer 4

I always advise customers to make the regular payment! You never know what may happen and as soon as you miss a mortgage payment, your credit rating takes a good hit. Think about it, when the chips are down, people will pay their house payment above anything else. What does it say about you if you missed a house payment?
Bottom line: don't risk it.

Answer 5

You can do it either way. I'd not bother, since the due date is the same as your close date. The mortgage company will provide the payoff amount a few days in advance, and they will include whatever you owe up to the time of closing.

Answer 6

yes