Question by Brian B: Which day of the month should I refinance?
Does it matter what day of the month you close on a refinance loan? I just paid my mortgage payment for the month of March. However, I if refinance and close on March 10th, would that mortgage payment get prorated and would I get some of it back?
Answer by zeuz
Give your answer to this question below!
most are prorated but a FHA or VA note should be done at the end of the month at least 5 days before the month ends as you are charged interest on the payoff till the end no matter what. So you want the loan to fund very near the last day as all refinances must sit 3 days after signing and then fund the 4th day after and then funds can be wired or overnight so the pay off is completed. If funds reach there the 1st of the month they will not release the lien as there will be another months interest added to pay the note off and yes the borrower are responsible for the excess interest so the lien will be released and the new note goes into first position as a new lien