Do You Really Skip a Payment When Refinancing?

 Skipping one and two monthsof Mortgage payment

The borrower must understand that while it's tempting to skip two months of house payment as that helps them save on their cash reserve for which they may have other plans. It can be done but it involves a lot of maneuvering on the movement of the files for loan closing.

What Happens If You Miss a Mortgage Payment

Let’s say for example you have initiated your mortgage with the goal of skipping two months of a house payment. Your mortgage payment is due the first of every month. So if you initiate your mortgage in September for which you have made your payments. Your next mortgage payment is due the first of October. If your loan officer tells you not to make the payment. The borrower still has 15 days of grace until October the 15th to make his payment before he gets reported late officially by the bank or the lender and to be reported the same on the credit report.

As long as the loan officer with whatever careful planning and maneuvering are able to close the loan between 1st of October till the 9th of October. The borrower gets to skip his October payment and his first payment would be due December the 1st.

This requires very careful positioning of closing the mortgage. If the dates are missed then the borrower would get to skip a month of the mortgage payment and not TWO MONTHS.

How Can I Skip a Mortgage Payment

In my opinion, while it is tempting to skip two months of housing payment. It should not be the sole intention of the borrower for initiating the mortgage.

An important thing one needs to understand here is that there is no free lunch by the bank. What essentially is happening n the mortgage is that the interest portion of the loan is being added back in the new loan amount instead of having the borrowers pay out of their check.

While certain situations at times may help borrowers but it's not advisable to initiate one's refinance with the intention of skipping two months of a house payment.

Mortgage borrowers need to understand the difference between renting and mortgage ownership. When you are renting a space you make payment in advance to your land lord for the given month. As an example, if I am renting a space and I need to make the payment for the month of October of 2017 to my landlord. I am paying my rent for the entire month of October to my land lord in advance to let me stay at his place.

When it comes to mortgage it’s just the opposite. You stay in your mortgage house for the entire month and when you make the payment. You are not making payment in advance for the coming month to your bank. Instead of having stayed in your mortgaged house for the entire month of let’s say October. When you make the payment on November the first. You are making the payment towards the month of October.

In short. The mortgage is paid in arrears having stayed n the mortgaged house for the preceding month while rent is paid in advance for the coming month to your landlord to allow you to stay in the rented space.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154