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Help me adult - mortgage refi question

gtpeach

Cyburbian
Messages
2,082
Points
21
So this has been the longest drawn out process, but we are finally at the point where we are closing on our housing refinance! Yay! Because it has been so drawn out, though, I didn't make any changes to our auto-payment on our current mortgage, which is set to deduct on August 1st. Which is the same day we're signing the paperwork to re-fi!

I asked the mortgage company to skip the payment since our closing on the re-fi will occur prior to the end of the grace period, but since I didn't give them two weeks notice, we're not sure if the request will go through or not. So if we do make that payment, how much of that would we get back if the rest of the pay-off has already been determined without that payment being factored in?
 

WSU MUP Student

Cyburbian
Messages
10,483
Points
45
I don't have an answer for you but I don't know that we'd be able to give you an answer without an amortization schedule for both mortgages?
 

kjel

Super Moderator
Staff member
Moderator
Messages
12,436
Points
40
Can you cancel the automatic payment yourself or do you have to do it through your servicer? If you can cancel the payment yourself that is what I would personally do.

If you cannot stop the payment, it will draft out and be applied like any other regular payment. Your new lender or closing agent will order a payoff from the existing mortgage company and the proceeds of the new loan will pay the balance off which should reflect the payment on the first. If you pay your taxes and insurance through mortgage escrow you will likely also receive a refund check for the amount held in escrow post closing.

I'd mention to the new lender and closing agent that you have a payment in transit and may need an updated payoff if you can't cancel the payment.
 

gtpeach

Cyburbian
Messages
2,082
Points
21
Yeah, my bank said that they couldn't stop the payment on their end, and the servicer on my current loan said it's unlikely the request to skip the auto-payment will be processed in time, so I'm kind of stuck at this point. According to the loan processor for the new loan, all the closing costs, etc. were based on the pay-off prior to the upcoming payment, so I'll just end up being refunded the additional mortgage payment that will most likely go through on the 1st. But I feel like this happened when I refinanced my previous house a million years ago and that wasn't what happened. But I can't remember enough of the details.
 

kjel

Super Moderator
Staff member
Moderator
Messages
12,436
Points
40
Yeah, my bank said that they couldn't stop the payment on their end, and the servicer on my current loan said it's unlikely the request to skip the auto-payment will be processed in time, so I'm kind of stuck at this point. According to the loan processor for the new loan, all the closing costs, etc. were based on the pay-off prior to the upcoming payment, so I'll just end up being refunded the additional mortgage payment that will most likely go through on the 1st. But I feel like this happened when I refinanced my previous house a million years ago and that wasn't what happened. But I can't remember enough of the details.
Make sure you login to your servicing portal after the payment drafts and is applied BEFORE the new loan closes to see the principal balance and check the escrow balance so you have that info if/when you need to follow up.
 

dw914er

Cyburbian
Messages
1,439
Points
18
So if we do make that payment, how much of that would we get back if the rest of the pay-off has already been determined without that payment being factored in?
You should get all of it back. Are you refinancing with the same company, or is it changing hands?
 

gtpeach

Cyburbian
Messages
2,082
Points
21
Make sure you login to your servicing portal after the payment drafts and is applied BEFORE the new loan closes to see the principal balance and check the escrow balance so you have that info if/when you need to follow up.
Good call!
 
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