Question about Closing for Mortgage Refi | TigerDroppings.com

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Vlad The Inhaler
Colorado State Fan
Colorado
Member since Sep 2008
3118 posts

Question about Closing for Mortgage Refi


So, I’m closing on a refi in a couple days and just got the numbers. Please help me to understand. I’m going to call my loan officer, but wanted to run it by you geniuses first.
Basically, my closing costs, or amount I’m paying at closing consists of:
1. Cost to pay off current loan ($100K)
2. Settlement Charge, or crap associated with closing (fees, escrow, interest for remainder of month, etc), $2K
These two are added, totaling $102K.
My loan is for $99K.
SO I’m paying $3K, the difference of $102 and $99K.
1). It seems odd that I’d pay more at closing if my load was for less money, but maybe I’m missing something.
2) What is the reason you pay and entire month of interest when paying off loan? Is it because you skipped the first month at the beginning of loan?

Thanks

Also, would there be any reason to anticipate not receiving my current Escrow money back?




This post was edited on 4/24 at 2:03 pm



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ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3552 posts

re: Question about Closing for Mortgage Refi


quote:

What is the reason you pay and entire month of interest when paying off loan? Is it because you skipped the first month at the beginning of loan?


your last payment was probably at the beginning of the month so you have to pay interest up to the day the lender is paid for the loan.

quote:

Also, would there be any reason to anticipate not receiving my current Escrow money back?



pretty sure they have 30 days to return the money to you.

disclaimer: i am not a loan officer, but i've bought and re-fi'd several properties over the years.






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Vlad The Inhaler
Colorado State Fan
Colorado
Member since Sep 2008
3118 posts

re: Question about Closing for Mortgage Refi


quote:

disclaimer: i am not a loan officer, but i've bought and re-fi'd several properties over the years.


Thanks. I don't think I'm getting screwed, but never had a refi and just want to make sure I'm not missing something obvious.







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Blackbeard
LSU Fan
Amite River
Member since Jun 2012
150 posts

re: Question about Closing for Mortgage Refi


Keep in mind your new monthly payment won't be do for at least 30 days...so thats a nice cushion





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