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home loan refinancing - cash due at closing ?

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home loan refinancing - cash due at closing ?

Old 03-03-2016, 04:49 PM
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Default home loan refinancing - cash due at closing ?

I’m in the process of refinancing my house and was just going through my paper work. In the cash due at closing section there is a $1,200 charge for “down payment/ funds from borrower. If I add the 30 days of prepaid interest to the $1,200 the amount comes out very close to my new monthly interest + principle payment. I understand the prepaid interest for the first month but can’t figure out this other $1,200 charge. Is this the principle payment for the first month?
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Old 03-03-2016, 04:53 PM
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They might be net funding your escrow and you will actually owe nothing. How much funds are in your escrow right now and what is the projected amount?
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Old 03-03-2016, 04:59 PM
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Originally Posted by offtheclock View Post
They might be net funding your escrow and you will actually owe nothing. How much funds are in your escrow right now and what is the projected amount?
I have roughly $4,500 in escrow currently. I have to pay $3,600 into escrow at closing.
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Old 03-04-2016, 05:35 AM
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Originally Posted by Bucklene View Post
I’m in the process of refinancing my house and was just going through my paper work. In the cash due at closing section there is a $1,200 charge for “down payment/ funds from borrower. If I add the 30 days of prepaid interest to the $1,200 the amount comes out very close to my new monthly interest + principle payment. I understand the prepaid interest for the first month but can’t figure out this other $1,200 charge. Is this the principle payment for the first month?
Call the closing agent and ask.
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Old 03-04-2016, 05:36 AM
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without seeing the entire HUD we really cant comment.... you have to add up all the line items...
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Old 03-04-2016, 08:03 AM
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Originally Posted by mikefloyd View Post
Call the closing agent and ask.
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Old 03-04-2016, 08:05 AM
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Originally Posted by triplenet View Post
without seeing the entire HUD we really cant comment.... you have to add up all the line items...
Bingo,.

Except it is now called a CD or Closing Disclosure thanks to the CFPB and is more difficult to understand as a consumer.

Either way, you need to take the document/transaction as a whole and not try to apply a specific figure to some other figure you have in your head.

When you refi you generally skip a mortgage payment so you pay interest for a partial month at closing. You also need to make up the contribution into escrow for the skipped payment.

The whole transaction is on the CD, you just have to keep an open mind and work thru it.
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Old 03-04-2016, 08:37 AM
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Are you buying down the interest rate?
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Old 03-04-2016, 09:06 AM
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I'm guessing they are allowing for a ful months of interest which will be adjusted at closing depending on what day of the month you will close.


Hate the new HUD. Looks like a credit card statement spread out over several pages.
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Old 03-04-2016, 12:33 PM
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Thanks for the replies. I was able to speak with mortgage broker this afternoon. He said is the difference in principle between the time the paper work was done and the the time the loan closes. The paper work was dawn up prior to my March 1 and April 1 payments so the loan balance will be $1,200 less when it closes and thus I won't really be paying the $1,200.
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