Lenders and closers love to talk about it, but what does it mean really? There are a couple of things they may be referring to. My old mortgage payment, due on December 1st has a 15 day grace period to pay it. If my loan is closed and funded before that grace period is up, technically I don’t have to make the payment. But you better believe the bank isn’t going to make the payment. That principal, as well as the interest, will just be added onto the loan (and your payoff amount will be higher).
First, I closed my loan in the first half of December
The second thing the lender may be referring to is the fact that I won’t make a January payment https://yourloansllc.com/personal-loans-ok/. While it is true that I don’t have to write a check in January, there really isn’t any savings going on. Again, no one else is going to make the payment for me. Continue reading “# 4 Understand Insurance and Property Tax Escrow Accounts”