refinance questions/interest at payoff

10-22-2010, 10:18 PM

im doing a va refiance just to reduce interest rate. on my payoff statement, i have a line item that shows principal balance as 157,000. then next line item says interest at 6.5 is 1439 more dollars. they are adding that 1439 to my payoff. my line of thinking is i should not be charged this interest cause the original loan is being paid off early. can some one explain? is this common? ive already had to keep getting other things fixed in the closing cost. at keast 5 times i have pointed out things im being charged for.

ideliver · 10-23-2010, 08:50 AM

i think that this the daily interest charge on the balance...kinda like when you had a balance on a CC from the previous month...and you pay the balance in full...the next month you get a bill for a few dollars...that is the interest charged from when the statement was sent until it was paid

double_j · 10-25-2010, 02:04 PM

Not sure. Ask about it.

It looks to be a bit less than 2 months worth of interest. Could be that they're adding interest already accrued in the period between payments (1 month) plus another month afterwards to protect them against processing delays, etc

I think it's normal. The payoff statement will usually say that the number is good for 30 days or something like that because they've already accounted for the interest that would accrue between the time you get the balance statement and the time you actually pay in full.

MadDog · 10-25-2010, 02:20 PM

Quote:

Originally Posted by stinkfinger

im doing a va refiance just to reduce interest rate. on my payoff statement, i have a line item that shows principal balance as 157,000. then next line item says interest at 6.5 is 1439 more dollars. they are adding that 1439 to my payoff. my line of thinking is i should not be charged this interest cause the original loan is being paid off early. can some one explain? is this common? ive already had to keep getting other things fixed in the closing cost. at keast 5 times i have pointed out things im being charged for.

The $1439 is the amount of interest until the loan actually starts. For example, if you refinance on March 15th, the new loan won't start until May 1st. You then pay the interest for the 45 days from March 15th to May 1st. It sounds like they're rolling that amount into the loan.

335iheLLraiseR · 10-25-2010, 04:34 PM

Quote:

Originally Posted by MadDog

The $1439 is the amount of interest until the loan actually starts. For example, if you refinance on March 15th, the new loan won't start until May 1st. You then pay the interest for the 45 days from March 15th to May 1st. It sounds like they're rolling that amount into the loan.

thats half correct.

that amount is part of his closing costs which they are taking from the payout of the refi.

you can choose to close at the end of the month and therefore reduce that number, but then you have to make that months payment. you pay for regardless, only depends on HOW you want to pay it.

CollinsE90 · 10-25-2010, 04:35 PM

when did e90post OT turn into finance advisors

335iheLLraiseR · 10-25-2010, 04:36 PM

OP, put up a copy of the HUD1.

335iheLLraiseR · 10-25-2010, 04:37 PM

Quote:

Originally Posted by CollinsE90

when did e90post OT turn into finance advisors

how do you think we pay for the bimmers?

CollinsE90 · 10-25-2010, 04:39 PM

Quote:

Originally Posted by 335iheLLraiseR

how do you think we pay for the bimmers?

im the first person to ask you guys questions, but i dont create an account and my first thread asking advice, he obviously came on here for that reason

335iheLLraiseR · 10-25-2010, 04:45 PM

Quote:

Originally Posted by CollinsE90

im the first person to ask you guys questions, but i dont create an account and my first thread asking advice, he obviously came on here for that reason

good point.

youtkiddin · 10-25-2010, 08:38 PM

why would anyone be upset because of my question. is this not off topic discussion. am i to assume if i would of ask what kind of weed some one smoked last night, that would of been fine. so for future referance what im i not to ask. i see some pretty lame ass topics on here and never once wondered why this or that was posted. maybe i should of just as what you guys fear the most. is this sight only to help folks with social anxiety disorders? also this is not my first post.

JayKay335i · 10-25-2010, 08:44 PM

Quote:

Originally Posted by CollinsE90

when did e90post OT turn into finance advisors

Since OP is TROLLin

bmwmthree · 10-25-2010, 08:49 PM

Quote:

Originally Posted by youtkiddin

why would anyone be upset because of my question. is this not off topic discussion. am i to assume if i would of ask what kind of weed some one smoked last night, that would of been fine. so for future referance what im i not to ask. i see some pretty lame ass topics on here and never once wondered why this or that was posted. maybe i should of just as what you guys fear the most. is this sight only to help folks with social anxiety disorders? also this is not my first post.

so you're the OP??

10-25-2010, 09:15 PM

i have split personality and social anxiety disorder. but i wouldnt dare ask for help. im also on that yak. lol

CollinsE90 · 10-25-2010, 09:16 PM

you're just mad i caught your ass

bmwmthree · 10-25-2010, 09:22 PM

Quote:

Originally Posted by stinkfinger

i have split personality and social anxiety disorder. but i wouldnt dare ask for help. im also on that yak. lol

10-25-2010, 10:45 PM

oh my god, i wont sleep tonight. jaykay335i caught me. oh and one other thing. im not rich nor drive a bmw. im just here for the asian car girl pics. oh and maybe an occasional fap.

bmwmthree · 10-25-2010, 10:49 PM

Quote:

Originally Posted by stinkfinger

oh my god, i wont sleep tonight. jaykay335i caught me. oh and one other thing. im not rich nor drive a bmw. im just here for the asian car girl pics. oh and maybe an occasional fap.

10-22-2010, 10:18 PM	#1
stinkfinger Guest 0 Rep n/a Posts Drives:	refinance questions/interest at payoff im doing a va refiance just to reduce interest rate. on my payoff statement, i have a line item that shows principal balance as 157,000. then next line item says interest at 6.5 is 1439 more dollars. they are adding that 1439 to my payoff. my line of thinking is i should not be charged this interest cause the original loan is being paid off early. can some one explain? is this common? ive already had to keep getting other things fixed in the closing cost. at keast 5 times i have pointed out things im being charged for.
	Appreciate 0 Tweet Quote

10-23-2010, 08:50 AM	#2
ideliver Major 240 Rep 1,247 Posts Drives: E60 M5, E71 X6M, E46 M3 Join Date: Feb 2008 Location: At the gas station iTrader: (0) Garage List 2006 BMW E46 M3 'vert [0.00] 2008 BMW M5 [0.00] 2011 BMW E92 [0.00] 2012 BMW X6M [0.00] 2003 E46 M3 [0.00]	i think that this the daily interest charge on the balance...kinda like when you had a balance on a CC from the previous month...and you pay the balance in full...the next month you get a bill for a few dollars...that is the interest charged from when the statement was sent until it was paid __________________ Current: 2006 E46 M3 'vert 6-sp 2008 E60 M5, 2011 E92 328 6-sp, 2011 E70 N55, 2012 E71 X6M
	Appreciate 0 Quote

10-25-2010, 02:04 PM	#3
double_j First Lieutenant 85 Rep 331 Posts Drives: 2008 JB/B E90 M3 Join Date: Nov 2009 Location: Northeast USA iTrader: (0)	Not sure. Ask about it. It looks to be a bit less than 2 months worth of interest. Could be that they're adding interest already accrued in the period between payments (1 month) plus another month afterwards to protect them against processing delays, etc I think it's normal. The payoff statement will usually say that the number is good for 30 days or something like that because they've already accounted for the interest that would accrue between the time you get the balance statement and the time you actually pay in full.
	Appreciate 0 Quote

10-25-2010, 04:35 PM	#6
CollinsE90 Where my bitches 743 Rep 1,924 Posts Drives: Cadillac coupe deville Join Date: Mar 2009 Location: street corner checking profits iTrader: (0)	when did e90post OT turn into finance advisors __________________
	Appreciate 0 Quote

10-25-2010, 08:38 PM	#11
youtkiddin Registered 44 Rep 2 Posts Drives: nunya Join Date: Sep 2009 Location: ala iTrader: (0)	why would anyone be upset because of my question. is this not off topic discussion. am i to assume if i would of ask what kind of weed some one smoked last night, that would of been fine. so for future referance what im i not to ask. i see some pretty lame ass topics on here and never once wondered why this or that was posted. maybe i should of just as what you guys fear the most. is this sight only to help folks with social anxiety disorders? also this is not my first post. __________________ coco puffs Last edited by youtkiddin; 10-25-2010 at 08:47 PM..
	Appreciate 0 Quote

10-25-2010, 09:15 PM	#14
stinkfinger Guest 0 Rep n/a Posts Drives:	i have split personality and social anxiety disorder. but i wouldnt dare ask for help. im also on that yak. lol
	Appreciate 0 Quote

10-25-2010, 09:16 PM	#15
CollinsE90 Where my bitches 743 Rep 1,924 Posts Drives: Cadillac coupe deville Join Date: Mar 2009 Location: street corner checking profits iTrader: (0)	you're just mad i caught your ass __________________
	Appreciate 0 Quote

10-25-2010, 10:45 PM	#17
stinkfinger Guest 0 Rep n/a Posts Drives:	oh my god, i wont sleep tonight. jaykay335i caught me. oh and one other thing. im not rich nor drive a bmw. im just here for the asian car girl pics. oh and maybe an occasional fap.
	Appreciate 0 Quote