Yet Another Mortgage Question?

[84CAB]

Mortgage Guys --I have sold my current home and it will close on April 25th. I am thinking about skipping the payment due April 1st and using that money for "other" things. My mortgage company can't tell me what the payoff will be so I can't tell if that is a bad finiancial decision to let the extra interest rack up. I am thinking that the majority of my April payment wil only go to interest anyway.
Advice? Pay the payment or spend the cash on hookers and blow?

[daepp]

AFAIK - You will pay it either way - directly or through escrow. If the former, it will most probably include a late charge.

[Dueller]

Well, you'll pay the same amount of interest whether you paay it with your monthly payment or if it is taken out of the sales proceeds at closing. Only difference would be that you'll probably have a late fee assessed by skipping the 4/1 payment.

If it were me, i'd just make the regular payment on 4/1 to avoid a possible late payment showing up on credit report (which would be unlikely given that it was paid off on 4/25).

[84CAB]

Thanks guys - great info.

[Dueller]

If you do decide to skip the 4/1 payment, call your lender and let them know you arenot paying it as you are paying the note off on 4/25...will make getting the pay off for closing a bit simpler. If your taxes/insurance are being escrowed, you will receive a separate check from your lender when the loan is paid off if theire is a balance left in that account.

[krichard]

Just went through the same thing last month. I closed on 3/20, the easiest thing is to make the 4/1 payment.

[911Rob]

pay it imo