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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Two mths free??
someone mentioned to me that mortgage payments won't start till the 3rd months after closing, has anyone heard of this? Is it true?
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Posted 9/16/05 8:34 PM  |
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Prudential Douglas Elliman Real Estate
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checka
She's here!
Member since 5/05 1769 total posts
Name:
Me
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Re: Two mths free??
From what I understand, you are paying it up front included in your closing costs.
ETA: I believe that you also pay the year's worth of insurance and a couple of months worth of taxes also up front as part of your closing costs.
Message edited 9/16/2005 8:43:04 PM.
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| Posted 9/16/05 8:41 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Two mths free??
No. There is no such thing as "getting a month free" with any mortgage because at closing you pay pre-paid mortgage interest that gets included in your closing costs based on what day of the month you close.
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| Posted 9/16/05 8:47 PM |
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Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
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Re: Two mths free??
Posted by DjPiLL
No. There is no such thing as "getting a month free" with any mortgage because at closing you pay pre-paid mortgage interest that gets included in your closing costs based on what day of the month you close.
YUP!
Nothing in life is for FREE 
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| Posted 9/16/05 8:48 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Two mths free??
Posted by Redhead
Posted by DjPiLL
No. There is no such thing as "getting a month free" with any mortgage because at closing you pay pre-paid mortgage interest that gets included in your closing costs based on what day of the month you close.
YUP!
Nothing in life is for FREE
Me and my mortgage broker had this same conversation two days ago.
I asked him if you pay more closing costs at the beginning of the month or at the end. And the first thing out of his mouth was "hey... people think they get a month free depending on what day of the month they close and thats simply a myth".
Never heard of somebody saying you get two months free though. If thats the case I gotta sign up for that mortgage.
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| Posted 9/16/05 8:50 PM |
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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Re: Two mths free??
Posted by DjPiLL
Posted by Redhead
Posted by DjPiLL
No. There is no such thing as "getting a month free" with any mortgage because at closing you pay pre-paid mortgage interest that gets included in your closing costs based on what day of the month you close.
YUP!
Nothing in life is for FREE
Me and my mortgage broker had this same conversation two days ago.
I asked him if you pay more closing costs at the beginning of the month or at the end. And the first thing out of his mouth was "hey... people think they get a month free depending on what day of the month they close and thats simply a myth".
Never heard of somebody saying you get two months free though. If thats the case I gotta sign up for that mortgage.
what I heard is that you don't start paying your montly mortgage payment till the 3rd month after closing, so it's like the first two months are "free"
obviously it's not LITERATELY free, regardless, you have to finish paying the full amount of your mortgage plus interest... just that you start payment two months later when you purchase the house. All I wanted is to verify if this is the case.
Message edited 9/16/2005 8:57:33 PM.
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| Posted 9/16/05 8:56 PM |
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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Re: Two mths free??
Posted by checka
From what I understand, you are paying it up front included in your closing costs.
ETA: I believe that you also pay the year's worth of insurance and a couple of months worth of taxes also up front as part of your closing costs.
really? is this listed on the GFE? All I see is a whole bunch of fees on mine!
Our closing cost is est. around 16k.
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| Posted 9/16/05 8:59 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Two mths free??
Posted by PiyoPika566
Posted by checka
From what I understand, you are paying it up front included in your closing costs.
ETA: I believe that you also pay the year's worth of insurance and a couple of months worth of taxes also up front as part of your closing costs.
really? is this listed on the GFE? All I see is a whole bunch of fees on mine!
Our closing cost is est. around 16k.
You don't skip a month. Trust me when I say there are no "Free months". 
Its on your closing costs... under Interest Paid @ 15 days (or 10 days depending on the GFE). That number will change based on what day of the month you close.
You don't pay PRINCIPAL payments the first month... but you do pay interest.
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| Posted 9/16/05 9:08 PM |
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Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
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Re: Two mths free??
Posted by PiyoPika566
Posted by DjPiLL
Posted by Redhead
Posted by DjPiLL
No. There is no such thing as "getting a month free" with any mortgage because at closing you pay pre-paid mortgage interest that gets included in your closing costs based on what day of the month you close.
YUP!
Nothing in life is for FREE
Me and my mortgage broker had this same conversation two days ago.
I asked him if you pay more closing costs at the beginning of the month or at the end. And the first thing out of his mouth was "hey... people think they get a month free depending on what day of the month they close and thats simply a myth".
Never heard of somebody saying you get two months free though. If thats the case I gotta sign up for that mortgage.
what I heard is that you don't start paying your montly mortgage payment till the 3rd month after closing, so it's like the first two months are "free"
obviously it's not LITERATELY free, regardless, you have to finish paying the full amount of your mortgage plus interest... just that you start payment two months later when you purchase the house. All I wanted is to verify if this is the case.
YES...you get to not pay your mortgage for 2 months....
But in all reality...you paid it already 2 months in advance at closing...
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| Posted 9/16/05 9:08 PM |
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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Re: Two mths free??
Posted by Redhead
Posted by PiyoPika566
Posted by DjPiLL
Posted by Redhead
Posted by DjPiLL
No. There is no such thing as "getting a month free" with any mortgage because at closing you pay pre-paid mortgage interest that gets included in your closing costs based on what day of the month you close.
YUP!
Nothing in life is for FREE
Me and my mortgage broker had this same conversation two days ago.
I asked him if you pay more closing costs at the beginning of the month or at the end. And the first thing out of his mouth was "hey... people think they get a month free depending on what day of the month they close and thats simply a myth".
Never heard of somebody saying you get two months free though. If thats the case I gotta sign up for that mortgage.
what I heard is that you don't start paying your montly mortgage payment till the 3rd month after closing, so it's like the first two months are "free"
obviously it's not LITERATELY free, regardless, you have to finish paying the full amount of your mortgage plus interest... just that you start payment two months later when you purchase the house. All I wanted is to verify if this is the case.
YES...you get to not pay your mortgage for 2 months....
But in all reality...you paid it already 2 months in advance at closing...
thank you 
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| Posted 9/16/05 9:20 PM |
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PiyoPika566
talk to the hand
Member since 5/05 1436 total posts
Name:
Stephanie
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Re: Two mths free??
Posted by DjPiLL
Posted by PiyoPika566
Posted by checka
From what I understand, you are paying it up front included in your closing costs.
ETA: I believe that you also pay the year's worth of insurance and a couple of months worth of taxes also up front as part of your closing costs.
really? is this listed on the GFE? All I see is a whole bunch of fees on mine!
Our closing cost is est. around 16k.
You don't skip a month. Trust me when I say there are no "Free months".
Its on your closing costs... under Interest Paid @ 15 days (or 10 days depending on the GFE). That number will change based on what day of the month you close.
You don't pay PRINCIPAL payments the first month... but you do pay interest.
under interest , it listed for 1 day 
ETA for typo... grr..
Message edited 9/16/2005 9:24:07 PM.
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| Posted 9/16/05 9:22 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Two mths free??
Posted by PiyoPika566
under interest , it listed for 1 day
ETA for typo... grr..
Yeah... it will be more most likely.
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| Posted 9/16/05 9:45 PM |
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btrflygrl
me and baby #3!
Member since 5/05 12013 total posts
Name:
Shana
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Re: Two mths free??
depends on when you close...we closed on May 20th and our first payment was not due until July 1st, so we essentially got 1 month free
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| Posted 9/16/05 10:14 PM |
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Re: Two mths free??
Posted by btrflygrl
depends on when you close...we closed on May 20th and our first payment was not due until July 1st, so we essentially got 1 month free
same with us, one month... Closed Aug 10th, 1st mortgage payment Oct 1st
except its not "free" you do pay that principal/interest. The payments just start a month later.
Message edited 9/16/2005 11:55:02 PM.
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| Posted 9/16/05 11:53 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Two mths free??
Posted by btrflygrl
depends on when you close...we closed on May 20th and our first payment was not due until July 1st, so we essentially got 1 month free
Then you paid for 40 days worth of mortgage interest in your closing costs and didn't realize it.
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| Posted 9/17/05 7:58 AM |
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joann564
LIF Infant
Member since 9/05 266 total posts
Name:
Jo Ann
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Re: Two mths free??
I don't know much about how this works all I know is I closed in December the 9th to be exact and my 1st mortage payment was due jan 15th.
And I payed closing costs up to ying yang, (close to 21grand)
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| Posted 9/17/05 12:45 PM |
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