Reply to Refinancing question - when to make the last mortgage payment

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[quote=Anonymous]Op - Generally yes. Mortgages are paid in arrears.  The 9/1 payment is PITI for August.

Now, what happens after that is complicated.  Because you have recission rights as a matter of federal law, the folder with your paperwork will go to the attorney and sit there until some time in the following week.  That means your settlement date is not the payoff date.  The escrow firm may pay one extra day of intest as a precaution to ensure that liens are released.

So, you will get some checks after closing.  We refi'd out of a loan serviced by Wells and the checks came within 30 days.

- a refund of any excess cash you brought to closing
- a refund of your escrow balance with the old lender
- a refund of any overpayment of the payoff amount of the old loan

You will make some payments at closing.  This might be rolled into your new loan balance depending on your equity in the property now.

You should already have all of this information on your HUD-1 form.  Your setup might be like the example below.  It ,ight be different.  Hopefully this example will help you understand the HUD-1.

You will probably be paying these items at closing.

- interest on the old loan for Sep 1-10 or so
- interest on the new loan for Sep 10-30 or so
- initial escrow balance
- fees and points

You will probably make the first monthly payment on Nov 1, the piti in arrears for October.

I'm not an attorney and this isn't tax advice, but if your HUD-1 shows points, you should check if they are tax deductible.

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