RE-FI PAYOFF---HOW LONG!!?? PLEASE HELP!!

[rom828]

Scheduled to close tomorrow (FINALLY!) on re-fi.

I understand the 3 day wait after closing before funds are dispursed, but how long after that before my original mortgage (Wells Fargo) gets paid off??  New loan is FHA, original one was not, if any of that makes any difference.

Per brokers advices, we didnt pay March 1st payment because we expected to close the sooner than this. 

But now that we're not closing til the 19th, I'm worried that re-fi funds wont get to Wells Fargo to pay off the loan in time to prevent me from being late.Since payment is due on the 1st, I'm assuming they have to have the payment on or before the 30th or they'll report it as 30 days late. The 3 days would be the 24th (if it's 3 business days) so not sure if that allows enough time to get the pyt to them. Am I figuring all this correctly?

I could go ahead and pay the March pyt if I had to, though it would really be a stretch since the closing costs almost equal the amount of the payment, so was sort of substituting this month's mortgage payment with a closing payment.  My worry there is how long it would take to get back what would then be an overpayment on the Wells Fargo acct since everything was calculated without a March pyt.

Sure hope someone can chime in with some recent personal experience! 

Message Edited by rom828 on 03-18-2009 08:22 AM

[ShanetheMortgageMan]

If Wells Fargo is paid off via wire, then they should be paid off the same day the escrow/title/settlement agent rec's the wire from the new mortgage.  If it's paid off via overnight, then add 1 day (or however long it would take an overnight package to get there).

Definitely want to pay March 1sts payment, and all other payments, as normally scheduled, until the old mortgage is completely paid off.  Make the payment, and instead of substituting closing costs for the payment, you would be subtituting the payment for the closing costs.  Mortgage lender gets an updated payoff (I believe you can actually request one online).  It's all the same in the end. 

[rom828]

Thanks for the quick response, Shane!

Problem is, we're scheduled to close tomorrow..all the paper work is in, so even if I pay wells fargo today, I dont think it would change how anything is set for closing, right?

Sounds as though Wells Fargo would receive payment from closing  anyway before I would be late, IF funds are wired or overnighted as you state.

BUT,  because I of course dont want a late  payment reporting to FICO, (was never late before on the loan!) when it's being paid off, I guess I should still make the march payment.  Wish I'd already done that as now I'll have to pay $100 or so in late payment fee which get assessed after the 15th, but better than a FICO late!  As I said, was advised not to pay as we anticipated closing first week of March and broker knew my funds are rather tight.

Since making this payment would result in any overpayment, how long before Wells Fargo would refund me the overpayment and any escrow??

[ShanetheMortgageMan]

They'd refund it within 30 days I'm sure.

[rom828]

Thanks for taking the time to help me with this; I know you're slammed!

Guess the best bet then is just to plan to "live lean" and go ahead and make the payment to avoid chance of a late on my record, unless I can get some kind of assurance that the re-fi funds would get to them in time. 

Since payment is due March 1st, am I correct in that they must have it by the 30th for it not to be reported as late?

[ShanetheMortgageMan]

Welcome, that sounds right to me.

[rom828]

Just thought I'd update that we closed yesterday (Whoohoo!) and attorney assured me funds would be wired to Wells Fargo on the 24th so should be no problem with a late payment reporting, so I didn't  make march payment after all.

I'll check with WF on the 24th just to make sure they got funds and I'll still have time to make the pyt should any problems arise.

I have to tell you, even with all the talk and speculation about rates going lower, it sure felt good to get this re-fi at 5.5%.  That's a whole lot better than my 6.75...new payment is $250+ less a month!!

Thanks again for the advices, Shane!!