I am in the process of selling a home, and the closing date is set for December 6th. I usually pay my mortgage payment on the 1st.
Should I pay on December 1, and if so, will I get a refund check from my mortgage company after closing? Or do I wait to pay it? I asked my realtor, and she said either way is fine, but I was concerned about it hitting my credit.
Thanks!
Your December 1 mortgage payment is applied to interest accrued in November, so there won’t be a refund for that. At closing, they will collect about 10 days of interest from you (on paper) to cover December 1 through closing. If it processes with your lender before 10 days, you’ll get the number of days of interest back.
If you DON’T pay December 1, it won’t hit your credit as long as it closes by December 12-13.
Thanks for the clarification!