Question by wlwages: Is it bad to be late on a mortgage payment?
Recently we tried to refinance our house. Our statement states that the mortgage is due on the 1st and late after the 16th. We tried to close on the 15th so we would not have to make a payement for that month. We were eventually told that we could not close until the 17th. The woman on the phone said that we should just not pay the payment and let the mortgage be late and pay the late fee and then the new mortgage company would pay off the loan and it would not be sent to the credit bureau unless it was 30 days late. I haven’t been late once yet and feel this is wrong. Should I pay the payment or let it be late?
Best answer:
Answer by GVD
Make the payment. Anyone telling you to be late is not a very bright person. Any overage on a refinance will be refunded to you so don’t worry about the payment already being included in the refi. You need to protect yourself and your credit. After you make the payment, tell your loan officer, or whomever told you this, that he/she is an idiot!
Know better? Leave your own answer in the comments!
Your new mortgage company should have requested and received an estoppel letter from your current mortgage company. An estoppel letter is a statement of the exact amount due on a certain date and a per diem interest rate. Discuss that with your new mortgage company.
realtor.sailor
I doubt you will be charged a late fee for this late payment is there is a late payment. It almost never a good thing to be late on any debt especially a mortgage loan.
I am sure your escrow agent is in complete communication with your former lender with an update about the mortgage loan pay off to them.
If anything check with the escrow closing agent to find out the exactly what the payoff demand is.Your escrow closing agent might even take the payment for your current mortgage company. This is done all the time. Your payment would cover the interest rate up to a certain time.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
ok here is the deal. Make the payment no matter what any one states. The fact is even if you close after the 15th if the title company or the atty handling the closing does not include the late fees the current lender will not release the lien. They will at some point report a 30 maybe even a 60 day if not caught in time. Even if you over pay that is fine the current lender will send you back the difference with in 30 days of their pay off. Also all refinance go into recession for 3 days after you sign at closing and then the funds are over night or wired to the lender that day. Yes the settlement agent will set that up but they may not in many cases think about getting an up dated pay off demand since they do not know the terms of your note.
I am a mortgage banker in TN
Even if you had closed on the 15th, since this a refinance the funds would not have disbursed until the 20th (assuming this was in April) due to the 3-day right of rescission.