Refi, able to skip last payment due to overlap of new loan?

[boober]

I'm doing a HARP refi and it's set to close here soon. Going from a 30 year with about 23 years left on it, to a 15 year fixed.

Not sure on the exact date, but I haven't made my payment for the month of April yet. Due to just waiting to see when the new loan goes into affect.

It's looking like it will close soon and my new payment on the new loan will be starting in May.

So I'm wondering if it might be possible to not even pay April's payment?

Just seems silly to make a payment on the old loan when it won't really bring my balance down all that much.

Anyways, it'd be awesome to be able to pocket that 1 months payment.

Is something like this possible?

I can recall being able to skip the last months payment on a house I've sold. I mean no point in making that last payment if the house gets sold and closed on in a week or so anyways. Just throwing away money.

Thanks

[boober]

PArt of my thinking is, if my closing is in the next couple of weeks, they're going to have my current loan balance listed in the new loan, which would be current as of my last payment which was for March.

So let's say if the balance is 100,000, and I did decide to just say to hell with it and make my April payment, well now all of a sudden the new balance is 99,800...

Kinda throws the numbers all out of wack. I mean what if I paid my April mortgage payment a day before closing? Those new numbers are going to be off for the new loan.

You guys see what I'm saying?

any thoughts?

Thanks!

[JM-AM]

Generaly when refinancing you will not pay your mortgage company directly when refinancing for the last month, since the loan is being paid off.

It is best to discuss with your LO or Broker to know exactly what needs to be done.

[boober]

Thanks JM-AM.

So when you say "Generaly when refinancing you will not pay your mortgage company directly when refinancing for the last month, since the loan is being paid off."

Who might I be sending that last payment off to if not the bank serviciing the mortgage? Would that may be handled at the closing?

Also if it matters,my current loan is with B of A, and they are the ones handling the HARP refi.

Everything's being done by them. If that matters that is.

[boober]

[boober]

[JM-AM]

Any payment would be made during closing if needed. But always check with your LO or Broker before holding back your payment. The last thing you want is to impact your credit for missed payment.

[boober]

Well I just got an email from B of A saying that my closing date will be on April 5th!

It's at my home and I  would think that my new loan payment would be starting on May 1st?

And I still haven't made my April mortgage payment. I don't get penalized a late fee for that until the 15th of the month.

So I'm thinking it seems like I'm actually going to be able to skip having to pay my April payment???

Hope so!

[JM-AM]

Yes you are fine in not paying your mortgage for April if closing on the 5th.

Congrats on your refi.

[Lel]

I'm going to take a different point of view from JM-AM and say that you should still make your April payment on your existing loan.  Here's the reason why:

Mortgage interest is paid in arrears - that is, the interest that you pay on April 1 is what is accumulated during the month of March.  Thus, the payment that is due on April 1 is the interest that was charged on the old loan.  If this isn't paid, this could be seen as a missed payment on an existing debt.  The debt won't be extinguished by the refinance until April 5.

In your GFE (line 10) or HUD-1 statement (line 901, if it has gotten that far), there probably is an amount listed for daily interest charges, which is determined based on your estimated closing date.  These are prepaid interest charges for your new loan, and represents the interest that will be charged from April 5 through April 30.  Basically, at closing you'd be paying the future interest charges in advance.  As a result, there would be no payment due on May 1, since you would have no interest charges in arrears.  Your first payment on the new loan would be due on June 1.

So before you decide to forgo your payment at all, you had better check and double check with your current lender and your refi lender.  I think there could be a great risk to you if you fail to make a payment that all parties fully expect you to make.