Real Estate Professional · Glendora, CA · Member since 2016 · 203 posts · 17 votes
I am in the process of refinancing my home from 30 years to 15 years.
It's my assumption that the new loan amount will be the same as the previous loan amount. I understand that I need to pay the interest to the current lender until the escrow is closed. I also need to pay the interest for the new lender for the remaining days in that month.
For example - my current loan amount is - 346,000
I am paying the interest for the first 20 days in Feb assuming that loan will be closed on 20th Feb before 1 PM and I will pay the interest for the next 10 days for the new lender in the Month of Feb. All these interests will be based on the loan amount of 346,000.
And the new loan will also start on 346,000 and then I will start paying monthly mortgages from April onwards (in fact it's actually March payment).
However, in my loan documents, my new loan amount is around 348,000. I am not sure why there is a hike of $2000?
Can someone please explain this gap?
All other expenses such as loan cost, etc.. are covered by credits. I am paying from my pocket for an impound account.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y
All the info should be right there on the HUD-1.
Where are you getting “credits” to cover the appraisal, the origination, the underwriting, etc etc etc? Either you’re taking a higher interest rate than normal to get a “no cost refi” or those costs are being rolled in to your new loan.
Ps. Chances are also good in your example, that you wont be making a March payment 10 days after you close your loan. In which case you actually have 40 days of interest not 10. But hud statements truly are pretty clean balance sheets. It should be pretty obvious what caused the $2k increase in debt.