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Refinancing and current mortgage last payment

Dr. J 25,044 3,353 December 22, 2015 at 02:49 PM
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I am in the final stages of a refinance. our current mortgage is with BoA and payments are due on the first of the month.

while looking over one of the last documents from the refinance lender I noticed a payoff amount from 12/1 and asked if that would be adjusted after I make my 1/1 payment since the closing is on 1/7.

after some confusion, I realized I didn't read the closing statement (some sort of rough cost itemization) which assumed that I wouldn't be making a 1/1 payment and thus the payoff amount included interest for 12/1 thru 1/11( estimated payoff date when they asked for the statement).

so asking the new lending company about this they said I could make the 1/1 payment but then they'd have to ask for another payoff letter fro. BoA which would cost more $$ ($30 each actually).

so my question is - I will technically not make the 1/1 payment thus "missing" it, and that makes me uneasy. the mortgage officer told me "legally we can't tell you to not make the payment...." what the fark is that? FWIW the payoff statement from BoA is the document that estimated the payoff amount WITHOUT a 1/1 payment.

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#2
You're fine. You have until 1/15 to make your 1/1 payment without a late fee. Your refinance figures currently assume you not making your 1/1 payment which means it includes interest from 12/1 to 1/11 like you stated. This means that if it funds sooner, you'll get a refund check from BOA for the extra interest received.

And the way people are today, loan officers could be taken to court if they told people not to make their payments and if something happened customers would/could come back and tell them the loan officer told them not to.
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#3
You're fine, read your statement, there is grace period. it usually states - late fees assessed after x/xx, and x less than 7 most likely. So, you're not late before that deadline.
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Last edited by Tatka75 December 22, 2015 at 03:07 PM
#4
Check with BoA about when a payment is considered late. It's typical for a mortgage payment to be due on the 1st of the month, but is not considered late until after 14 or 15 days. Not sure why your mortgage broker is not being more clear with the situation in the first place...
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#5
As others already noted you will be fine.

All my past BOA mortgages you had until the 15th and I think 16th was the late charge date, but your statement will tell you if you pay on x date pay x ect. Also BOA is quick in removing access to viewing "closed paid" accounts online I noticed when I refinanced within a few days I could no longer see my old mortgage account.
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#6
Thanks everyone!
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#7
Quote from Seadiel View Post :
As others already noted you will be fine.

All my past BOA mortgages you had until the 15th and I think 16th was the late charge date, but your statement will tell you if you pay on x date pay x ect. Also BOA is quick in removing access to viewing "closed paid" accounts online I noticed when I refinanced within a few days I could no longer see my old mortgage account.

Well you were right. Signed the papers on the 6th; with the 3 day wait, weekend, loan didn't fund until Monday (11) but yesterday (12) the mortgage wasn't even listed in my account anymore! What's worse is that I just got an email to download my 2015 tax docs and the email specifically stated that since I had electronic access, they wouldn't be mailing them to me. I had to stop into a branch to correct.
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#8
Quote from Dr. J View Post :
Well you were right. Signed the papers on the 6th; with the 3 day wait, weekend, loan didn't fund until Monday (11) but yesterday (12) the mortgage wasn't even listed in my account anymore! What's worse is that I just got an email to download my 2015 tax docs and the email specifically stated that since I had electronic access, they wouldn't be mailing them to me. I had to stop into a branch to correct.
Yea that sucks, they should at least leave the statements/tax docs online for a few months after account closure.
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#9
Most default grace periods are 7 days. You will want to confirm that with your bank but I wouldn't be fretting about it. Nothing at all happens within the grace period -- no bad credit reporting and no late fees -- sometimes institutions will send you a late notice reminding you that this payment is due but that would be all. Grace periods are different at institutions so it would be wise to just verify the grace period although you would likely be fine assuming at least a 7 day grace.
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#10
This all comes down to loan documentation. The number on the mortgage note must be correct without question, so they are drawing documents on the payoff letter plus the per diem interest to 1/11.
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