Additional Posts in Consulting
Additional Posts (overall)
Real talk - I think I need xanax.
Is anyone's DTE still not working?
Accenture fish - are firm initiatives required ?
I think my pants just ripped
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Pro
You pay for the month. They (bank) will wire your money back for 22 days or so
D1 that's not correct, mortgages are post-paid not pre-paid. Additional money will be owed for the interest accrued between July 1 and July 9 as part of the loan payoff at closing.
Yes pay. At closing , lawyer will calculate final $ amount , that will consider taxes which you owe , partial mortgage for the month and other details before coming to final $ value which will come to you . Your lawyer will (should) also walk you through all those numbers .
I believe they will take it out at closing if not paid, that plus any taxes.
Mortgages are post-paid, not pre-paid. Your July 1 payment is for June and is due in full as normal. You will owe additional interest for the July 1-9 period after payoff. It'll all be taken out of closing.
It's why when you buy a house mid-month, you don't make a mortgage payment immediately on the 1st of the next month. Usually waits a full cycle (e.g., close June 15, 1st payment would be Aug 1st), and you pre-pay interest at closing to cover the interest that would be due on July 1 for the June 16-30 period.
Get a payoff statement from your lender that will show all of the costs that will be due.
Pro
You have to pay it. They figure out the payback on day of closing.
You are responsible for July 1-8
Buyer is responsible from July 9 onwards
Proration will be done at closing
I would pay the mortgage on July 1 to avoid any confusion later
Rising Star
When is your late fee assessed?
If it's not assessed until day 10 you should be fine. If there's a processing delay in paying off your existing mortgage you could still get charged a late fee.
Damn I’m buying a house right now and my rate is 2.85%. If you’re buying again, I hope you get a better rate
30. Not ideal but I’m not in a position to do 15 currently