When to pay the mortgage?
The mortgage is due Sept 1st but the grace period allows me to pay Sept 16. The house closes on Sept 22nd. SHould I pay my September mortgage?
Answer:
If you don't pay it now then there will be a late charge included in the final payoff. If I were in your position I would make the September payment to avoid the late charge. If you pay it in the next couple of days the payment will be credited to your account in time for the closing.
It shouldn't affect your credit score if the payment is late by less than 30 days. But closings often get postponed and if it closes 2 weeks later then it may affect your credit score.
Unless you have made previous arrangements (in writing) with your mortgage company you are still the legal owner of the house and I'm pretty sure that they will expect payment for the September amt. If cash is tight you might talk to them and see if they will contact the title company and make arrangements for the September amt to be withheld from your sales profit and sent directly to them. If you do it in advance they might wave the late charges.
I would pay it. One, to avoid the late charge and two, if there is a delay in the closing, your credit score is at risk. It will not affect the credit score until it goes 30 days late (from the Sept.1 date), but don't take any chances.
I work in the Real Estate/Mortgage industry and I have seen delays in closing dates. Also I have seen the Escrow/closing agents delay the payoff of your mortgage from the closing funds. Not on purpose, but accidents happen and you do not want a 30 day mortgage late on your credit report.
No. Check with your lender (or the title company) but most likely the payoff they have is good through the end of the month.
Rick Lanicek
www.primelendingonline.com
I would pay it. Sometimes there are delays in closings and how quickly the money is sent to the mortgage company. They will send you the money back if they receive the payoff from the title company first.
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