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Mortgage payment when selling home
Posted on 4/2/19 at 5:00 am
Posted on 4/2/19 at 5:00 am
the title of this thread is kinda funky, but my question is that we have a contract to sell our home and the proposed closing date is 4/20, where as my mortgage is due on 4/16. looking at my mortgage breakdown, looks like $745 will go toward interest, and i hate to just waste that money if the loan will be paid in full just 5 days later. is there any recourse if i just skip aprils mortgage payment?
10
Posted on 4/2/19 at 5:33 am to gsvar2004
You will pay your mortgage, plus a prorated amount to the day it closes. o you will pay not only April's statement, but also the interest for the additional 5 days. Bank isn't in the business of giving away 745+ dollars to people just because.
You'll turn around and get the principal right back in the transaction of the sale (unless selling for a loss). But the interest is owed to the bank until you pay off the loan.
You'll turn around and get the principal right back in the transaction of the sale (unless selling for a loss). But the interest is owed to the bank until you pay off the loan.
Posted on 4/2/19 at 6:09 am to gsvar2004
Dude it’s five days, not like five years. On the positive side, after closing on selling your house you will typically find that you get a few checks in the mail for prorated reimbursement for escrow related items.
Posted on 4/2/19 at 6:26 am to gsvar2004
quote:
the title of this thread is kinda funky, but my question is that we have a contract to sell our home and the proposed closing date is 4/20, where as my mortgage is due on 4/16. looking at my mortgage breakdown, looks like $745 will go toward interest, and i hate to just waste that money if the loan will be paid in full just 5 days later. is there any recourse if i just skip aprils mortgage payment?
You took out a loan and must make payments until you satisfy it, the house is simply collateral.
You seem to be conflating two separate things here.
Posted on 4/2/19 at 7:02 am to gsvar2004
No. It’s actually common practice to not pay your mortgage at all when your house is for sale. The bank understands.
ETA: don’t do this! Completely a joke.
ETA: don’t do this! Completely a joke.
This post was edited on 4/2/19 at 7:57 pm
Posted on 4/2/19 at 7:19 am to gsvar2004
Just write them a note and explain why you don’t want to pay it, surly they will understand
But really, pay your note and you will owe at least another 100 for the interest for the 4 extra days
But really, pay your note and you will owe at least another 100 for the interest for the 4 extra days
This post was edited on 4/2/19 at 9:08 pm
Posted on 4/2/19 at 7:39 am to gsvar2004
quote:
where as my mortgage is due on 4/16
Your mortgage is due on the first of the month. THe 16th is the grace period. Unlike rent, when you pay your mortgage payment your'e paying for the month you just spent in the house and not for the upcoming month. Mortgage payments are paid in arrears.
You're going to owe interest for the 1st through the 21st no matter what and if you don't make the payment you're going to additionally owe interest for March and for any escrows for March.
Posted on 4/2/19 at 8:00 am to gsvar2004
Speak with the title company so they can coordinate when ordering the payoff request.
Posted on 4/2/19 at 8:46 am to TigerDeBaiter
quote:
No. It’s actually common practice to not pay your mortgage at all when your house is for sale. The bank understands.
I laughed.
But it should be noted that this dude is just kidding.
Posted on 4/2/19 at 9:15 am to gsvar2004
The payoff amount includes unpaid interest. So if you don't pay the loan on the 15th, it's going to just mean a larger amount comes out of your sale proceeds at closing, plus, they might hit you with a late fee.
It's not money "wasted", it's money you owe.
It's not money "wasted", it's money you owe.
Posted on 4/2/19 at 10:17 am to gsvar2004
You'll be paying it one way or the other. Might as well make your payment to avoid any additional late fees and any hits to your credit. If the payoff the title company received already accounted for collecting that amount, then you'll get reimbursed later once the bank has received the payoff and has done their processing
Posted on 4/3/19 at 12:34 pm to VABuckeye
quote:
Your mortgage is due on the first of the month. THe 16th is the grace period. Unlike rent, when you pay your mortgage payment your'e paying for the month you just spent in the house and not for the upcoming month. Mortgage payments are paid in arrears.
You're going to owe interest for the 1st through the 21st no matter what and if you don't make the payment you're going to additionally owe interest for March and for any escrows for March.
What we like to call "arrears".
Mortgage interest is paid in arrears.
Posted on 4/3/19 at 3:25 pm to gsvar2004
Man you’re in for a rude awakening when you have to pay daycare for days that they aren’t open
ETA: member that first month you lived there and didn’t pay anything? You already owe them the interest, why would you want to add a late fee?
ETA: member that first month you lived there and didn’t pay anything? You already owe them the interest, why would you want to add a late fee?
This post was edited on 4/3/19 at 3:31 pm
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