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Yes, you can skip the August and Septmeber payments in theory and for cash flow purposes. The interest from July 1 through the payoff date will be added to your payoff and interim interest on your settlement statement will take care of from funding date through August 31. Your October 1 payment will take care of interest accrued in September.
I'm guessing it's preferable to make the payment, but for cash flow purposes, as you stated-to free up some $, it is okay to do so.
It would be such a positive for my 'Cash flow' available to have that opportunity to skip Aug. and Sept. And then eventually pay more on the principle.
You can skip the payment, but if the buyer experiences a delay that pushes the loan closing back past the 16th, you will have a late charge taken out of your proceeds.
It's the same either way in terms of the amount of interest, however, you can, as previously said, skip the payments for cash flow. The accrued interest will make the pay off of your old loan more so your new loan will be slightly higher. If skipping the payments allows you to take that money and pay other debt (i.e. credit cards, etc), it is a good idea
Piece of advice for a new homeowner - One extra payment a year towards your principle (On a 30yr loan), will knock 7+ years of your term.
It first year of payments for your mortgage is almost all interest. Year 5 or 6 is when you break even regarding the payment amount of interest / principle.
Since this is an installment debt - sending extra into to your payments, gets report to the Credit Bureaus as you being more responsible, and your credit score goes up.
My loan will close in mid-August, before the 15th or so. My first months payment is due Oct. 1st on the new loan.
July is paid obviousley. But since my loan closes in Mid-August, can I essentially skip this August payment as well?
The new loan pays off the old one, so that should take care of the August payment, right?
Will I be fine skipping it?
The big question is....are you doing a FHA streamline refi (FHA to FHA) If so, it has to be paid current when refinancing (i.e. your August payment would have to be paid before closing).
The big question is....are you doing a FHA streamline refi (FHA to FHA) If so, it has to be paid current when refinancing (i.e. your August payment would have to be paid before closing).
You are mistaken. Even on the streamline, the borrower can skip 2 payments. The loan is current until it is late by 30 days.
In case you are wondering, this has no impact on your fico score. As long as your new loan closes and funds before the end of the month, you can skip both payments with no negative consequences other than the late fee added to your payoff if the loan funds after the 15th or 16th. Some lenders give you to the 15th while others the 16th.
You are mistaken. Even on the streamline, the borrower can skip 2 payments. The loan is current until it is late by 30 days.
In case you are wondering, this has no impact on your fico score. As long as your new loan closes and funds before the end of the month, you can skip both payments with no negative consequences other than the late fee added to your payoff if the loan funds after the 15th or 16th. Some lenders give you to the 15th while others the 16th.
You are correct in that it would not have an impact on FICO. However, straight off of All Regs:
"The mortgage being refinanced must be current for the month due."
This pertains to all mortgages being refinanced into a FHA loan. This means if your refi is funding on even the 2nd of the month, that month's payment has to have been made previously.
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