Skip a Mortgage Payment? Don't Make This Mistake! Denver, CO

By
Mortgage and Lending with Fairway Independent Mortgage Corporation NMLS #395819, FIMC #2289

Skip a Mortgage Payment?  Don't Make This Mistake!  Denver, CO

It seems that everyone is refinancing these days.  Refinance Rates are low, and people are taking advantage of it.

Along with refinancing, many times a home owner can skip a mortgage payment

Skip a Mortgage PaymentIt is important to understand that you don't really skip a mortgage payment when you refinance.  The mortgage companies will always get their interest, so what happens when you skip a mortgage payment is that the interest is rolled into the new mortgage.  Not a bad option for help with cash flow in your household so you can take care of other bills that month.

However, don't make this critical mistake!  Many mortgage loan officers will tell their clients to stop making their payments because they are refinancing.  This is horrible advice!

Even though you can skip a mortgage payment when you refinance, it's a horrible idea to just stop making your mortgage payments. 

Remember, the mortgage company will still want their interest, so if you stop making your payments leading up to closing, you will risk having a 30 day mortgage late appear on your credit.  This occurs when your payment is sent more than 30 days past the due date.  Even if you are refinancing, if you make your payment to your current mortgage company more than 30 days late, it will show up on your credit, and potentially derail your refinance.

A mortgage late payment will affect your credit for years, and could cause your credit score to plummet.

So, if you get the advice from your mortgage broker to stop making your payments- bad idea!  Keep making your payments until your closing is scheduled and certain, because the worst thing that could happen is for a mortgage late payment to show up on your credit.

Find out how you can skip TWO mortgage payments without hurting your credit!

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RJ Baxter, Colorado Mortgage Banker

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12211 West Alameda Parkway Suite 210

Lakewood, CO 80228

NMLS #395819

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Topic:
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Tags:
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Rainer
175,578
Julia Odom
Select Realty Professionals - Chattanooga, TN
Chattanooga Homes for Sale

Yikes! What MLO is giving that horrible advice?

Sep 10, 2010 04:26 PM #1
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

RJ.. good advice if a loan officer says stop making payments... but in my opinion, there is nothing wrong with not making a mortgage payment that same month that you are closing. Especially if you need to bring money to the closing table. But again, many loan officers state this or handle it the wrong way... or don't close that loan on time. So your advice is good, but in my 18 yrs, it works for my clients, because I also tell them not to spend that money until closing. Your thoughts on this?

jeff belonger

Sep 20, 2010 02:39 PM #2
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RJ Baxter
Fairway Independent Mortgage Corporation - Lakewood, CO
303-670-0137

Agreed- I hear it all the time, however, when brokers tell their clients not to make their payment and the client then ends up with a late on their credit if the transaction doesn't close in time.  It's just a shame.  I always tell me clients the same this you do and also toward the middle of the month, if they still haven't made their payment for that month, which some haven't, I tell them that the lender will get their interest anyway, whether it's on the payoff or through the payment, so they should make the payment.

Sep 21, 2010 08:24 AM #3
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Rainmaker
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RJ Baxter

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