Residential | Commercial Mortgage Brokers | Expert Plano Texas
Mortgage Broker Plano: Plano-Texas mortgage borrowers looking to refinance their home to get the lowest mortgage rates in Texas would find the article helpful.
Most of the time the interest of the borrowers looking to refinance want to skip two months of house payments. While it is true that this can be done however my suggestion would be that mortgage borrowers should not pursue their refinancing effort with the goal of skipping two months of the mortgage payment.
Skipping two months can be done. It requires careful positioning and movement of the files and mortgage closing date. A borrower may be going through some tough times and hence they may be looking to do so.
What the Plano-Texas mortgage borrowers need to understand is that mortgage is a financial obligation. No matter which way you slice it or dice it. You still have to pay the sum at the end of the day. Skipping two months of housing payment doesn’t mean that the payment has been waived. There is no free lunch offered by the banks.
If you are interested in knowing how it happens. You need to understand that mortgage is always paid in arrears whereas rent is always paid in advance.
If you go back in times and recall when you renting a place. If you make the payment to your landlord on September the first. You have made your payment for the entire month of September in advance to the landlord. Whereas when you make the payment to the bank on your mortgage on September the first. You are actually making the payment for the previous month that is August and NOT for the month of September. Which is why it’s said that mortgage is always paid in arrears while rent is paid in advance.
So if you are clear on this. It will be easier for you to understand how the system works on what borrowers ask skipping my house payment.
Assume that your mortgage closing date is the 15th of September. Assume that the borrower has made the house payment on September the first. So now you know that the payment is being applied for August. The new lender would request the borrower’s current bank or lender to charge 15 days of interest and the new bank would charge its 15 days of interest and add that to your mortgage amount. So the next payment would be due November the 1st. Borrowers feel that they have skipped a payment. No they haven’t skipped it. It’s already been added to their principal balance.
I don’t say it’s good or bad but it’s a way of managing finances. These borrowers who don’t like the principal balance to go up would request the mortgage expert Plano TX that they would like to bring the payments at the time of closing so that the loan balance does not increase. Whereas those who may like to have some liquidity might ask the expert that they wish to skip one or two months of a house payment.
Hopefully, the article has helped in improving the understanding of how the system works.
Plano Texas mortgage borrowers looking for lowest rate on a mortgage should speak to Plano Texas mortgage expert or lender or broker to help them.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154
Article by: Roger Shanker
