Washington State Mortgages, Made Clear. Buying or Refinancing? Let's find the right loan together.
The promise of not having to write a check for your mortgage payment for two months seems so tempting that many home owners chomp on the bit when a Loan Originator dangles that bait to lure in a refi candidate. The truth is you’re not skipping anything. [Read more…]
I am often asked this question during a refinance from homeowners.
Your mortgage payment is paid in arrears. For example, your February payment is paying January’s interest. Remember when you bought or refinanced your home and the loan originator stated, “you’re going to skip one month’s payment” or “you won’t have another payment due until the following month after closing”? Well, this is where that payment essentially catches up with you. (Technically, it’s not “that” payment, you’re just always paying the previous month’s interest).
