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    Question about home loan.

    If I close on 27th May, I will pay interest per diem for the remaining days of May.

    But my first payment will not be due until July 1st. Why is that?

    With rent, you pay in advance for the month ahead, in the begining of the month. Is it true that with mortgage loans, my payment is applied to the previous month and not the month that is starting? So, my first payment on July 1st would actually be for the month of June?

    If this is not true, I must be missing something. Maybe my first payment is somehow factored into the closing costs or down payment.
    You have the right to remain silent, anything you say will be misquoted, then used against you.

    #2
    Re: Question about home loan.

    Because the lender wants to make as much in interest as possible. Each day you dont pay, your interest on your prinicipal keeps adding up.

    Comment


      #3
      Re: Question about home loan.

      No, you are probably just stuck in a crack. They probably produce the bills for the following month a day or two before you close, and you will not be in their computer yet. More than likley they schedule all the bill to go out a single time, and do not have the ability to produce a bill at any other time of the month. I am suprised that they do not ask for the first payment at the closing table, consider yourself lucky.
      Boycott Venezuelas State owned Citgo.

      Buy Royal Dutch Shell gasoline!

      Comment


        #4
        Re: Question about home loan.

        Originally posted by Madhanee
        Because the lender wants to make as much in interest as possible. Each day you dont pay, your interest on your prinicipal keeps adding up.
        But I will only pay the interest for the last few days of May, at closing, not for the entire month of June.
        You have the right to remain silent, anything you say will be misquoted, then used against you.

        Comment


          #5
          Re: Question about home loan.

          Dude you will be paying off your loan for another 15 to 30 years. Whats a few bucks in intererst, the write off amount will exceed the interest paid. Congratulations on your new house (that you will call home). Good Luck.
          Can you Hear me Now!! Good

          Comment


            #6
            Re: Question about home loan.

            Originally posted by Verizon
            Dude you will be paying off your loan for another 15 to 30 years. Whats a few bucks in intererst, the write off amount will exceed the interest paid. Congratulations on your new house (that you will call home). Good Luck.
            I am trying to understand the process and at the same time I want to avoid surpises.
            You have the right to remain silent, anything you say will be misquoted, then used against you.

            Comment


              #7
              Re: Question about home loan.

              rent ypu pay in advance, mortgage ypu pay in arrears.
              The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

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                #8
                Re: Question about home loan.

                Check with your title company about the closing costs and make sure you read the T-I-L and congrats on the new home. Can't wait till I buy one.

                Comment


                  #9
                  Re: Question about home loan.

                  Originally posted by Fraudz
                  rent ypu pay in advance, mortgage ypu pay in arrears.
                  That explains it all. thanks a bunch
                  You have the right to remain silent, anything you say will be misquoted, then used against you.

                  Comment


                    #10
                    Re: Question about home loan.

                    Originally posted by Fraudz
                    rent ypu pay in advance, mortgage you pay in arrears.
                    Yep. People like to think the first month is free but it isn;t really

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                      #11
                      Re: Question about home loan.

                      Yeah you pay mortgage thru rear. I have been doing it for friggin 200 years and I still have some 3000 more years to go. I hope my rear can survive it.

                      Comment


                        #12
                        Re: Question about home loan.

                        hahaha

                        edit: Oh and I was asked to pay the first month's at closing.

                        Who is your lender Asif?
                        I know that you believe that you understood what you think I said, but I am not sure you realize that what you heard is not what I meant.
                        - Robert McCloskey

                        Comment


                          #13
                          Re: Question about home loan.

                          Are you sure it was ur entire mortgage payment and not somehting like 29 days of interest?

                          Comment


                            #14
                            Re: Question about home loan.

                            Originally posted by ahmadjee
                            hahaha

                            edit: Oh and I was asked to pay the first month's at closing.

                            Who is your lender Asif?
                            Ok, I was afraid someone was going to ask. See the thread move into an entirely different direction.

                            Its LARIBA

                            You have the right to remain silent, anything you say will be misquoted, then used against you.

                            Comment


                              #15
                              Re: Question about home loan.

                              If you don't mind me asking, why you went with them? Low cost, better service, past family experience?
                              I know that you believe that you understood what you think I said, but I am not sure you realize that what you heard is not what I meant.
                              - Robert McCloskey

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