Help- Refi Question

[veronak]

I was really hoping to close before the first. I have not heard a thing from the title company so I reached out to the broker. She’s telling me to hold off from making a payment. I’m nervous about that. She says if I pay, I’d get reimbursed, anyone know anything about this?

[disneysteve]

Are you asking about making your July 1 payment on your existing loan?

If you haven't yet closed on the new loan, then I think you ought to pay your current loan. That said, most loans have a penalty-free grace period. Our payments were always due on the 1st but there was no late fee or penalty if you paid by the 16th. The only downside is interest continues to accrue so delaying will cost you a tiny bit in extra interest but not a significant amount.

So check your terms and grace period. If closing the new loan is imminent, I see nothing wrong with waiting a few days as long as you still leave yourself enough time to pay within the grace period if you have to.

[veronak]

Yes, that’s exactly what I wanted to know. I’m going to pay it today. Thank you

[riverwed070707]

I had this exact same scenario in may - my closing kept getting delayed due to the high volume of refis. My lender said I didn't need to pay but when the 11th rolled around I got nervous about it potentially getting reported on my credit if we didn't close by the 15th so I paid it. It ended up getting refunded but gave me a piece of mind.

[Jluke]

Since you didn’t close before July 1 you have now paid all interest from June.

now the interest clock for a July starts. When you do get your final documents for closing pay close attention to the loan amount and the number of days of interest for the existing loan and the number of days of interest for the new loan.