Refinancing

c20916

Slacker
Forum Member
Aug 19, 2000
3,677
6
0
50
St. Charles, IL
I find this very odd, but if true really sucks. I refinanced my mortgage last month with a new mortgage company. My closing date was May 26th. My old mortgage company provided a payoff thru 5/29, the new mortgage charged me interest at closing from May 26th, my closing date, thru the end of the month.

I said I am paying double interest, and they said once everything is funded you'll get a check back. I got my check back and it was for $11 which is the overage of the check I brought to closing. I called the title company and they said my old mortgage company would be the ones that give me the refund for the duplicated days. I called the old mortgage company and they said we rec'd the Check on the 29th so that's the day we payoff the loan, and she told me that's how it is that when you refinance you are paying double b/c the bank can't pay it off the same day you close.

So the question is if my old mortgage doesn't get paid off until the 29th isn't that when my new one should start? It would make no sense that everytime you refinance you pay interest on two mortgages for 3-4 days or however long it takes for the payoff to happen.
 

Mr.Met

Registered User
Forum Member
Aug 28, 2006
19
3
0
You pay per diam interest from the closing date until the end of the month with the new company, and since you have a three day right of recission, you pay interest until that is over and the old loan is then paid off.
 

c20916

Slacker
Forum Member
Aug 19, 2000
3,677
6
0
50
St. Charles, IL
I know I pay interest from the day I close until the end of the month on the new loan, my problem is one loan should start when the other is closed, it doesn't make any sense that I pay interest on two mortgages for 3 days.

either the old loan should date the payment on the closeing date or my new loan should start on the date the old one is funded and closed out.
 

hedgehog

Registered
Forum Member
Oct 30, 2003
32,897
708
113
50
TX
I know I pay interest from the day I close until the end of the month on the new loan, my problem is one loan should start when the other is closed, it doesn't make any sense that I pay interest on two mortgages for 3 days.

either the old loan should date the payment on the closeing date or my new loan should start on the date the old one is funded and closed out.

I agree with you...sounds like they get the 3 day float on both...that would piss me off too
 
Bet on MyBookie
Top