Can I skip my last mortage payment and use it to pay $1000 off of my home equity loan before closing?
Tags:home equity loan, loan principal, money, mortage, mortgage payment,
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I have a Mortgage remuneration due Novemeber 1. The place is starting to be sole Novemebr 14. we was starting to take a income we would make use of to compensate a mortage as well as take 00 off of a home equity loan (Principal) so it is which most reduction which we have to compensate out of slot during closing. Is this intelligent or dumb?
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I NEVER would advise someone to not make a payment just before selling their house or refinancing. I work on the wholesale side for a bank and I always see borrowers who screw themselves by getting a late payment right before their loan closes. If you make your payment / sell your home within 30 days of your payment date (nov 1st – dec 1st) then you have nothing to worry about. HOWEVER, time and time again something happens where the loan doesn’t close in time and the payment gets posted late. Now you have a credit late on your report affecting your future ability to obtain credit.
Lets say your "buyers" can’t close their loan in time to purchase your house. The other lender goes out of business (which is happening a LOT these days) or changes guidelines or something (also happening a lot). Your buyer can’t close, you spent your mortgage payment and now your payment is due. Now you get a late payment and can’t qualify for your new home purchase. I’ve seen it a million times.
Just my 2 cents….
Not smart, especially before closing.
You do NOT want to mess with your credit or change anything. Even if it would be nice to have an extra $1000 laying around to help with the closing, you have an obligation to the mortgage FIRST.
Actually, you can ask your lender to add that last payment amount into your payoff for closing. That way you don’t have to pay it and the lender is aware of that. If they agree to this, make sure they give you something in writing. If you do pay it, and it’s already been including in the payoff, they will simply send you a refund check.
Generally a house payment that is due on the first is often given a 15 day grace period, thus you can pay anytime between the 1st and the 15th without penalty. If this is the case for you, you can skip the payment!!!
But to use the money to pay off a home equity loan would be silly since the house is being sold and both loans would have to be paid off for the property to transfer. The home equity lender can receive your money before or on the same day as the closing and it won’t likely change your net profit or loss.
It doesn’t make much sense because you have to pay off both loans at closing anyway. What difference does it make which one you owe 1k less to?