We are refinancing our FHA mortgage. What is the best time of month to close on this type of mortgage?

Asked by Bridget, Fountain Hills, AZ Mon Jul 16, 2012

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Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Sun Feb 24, 2013
Gregorio is correct. If it's a streamline or traditional FHA refinance, in either case, you want to close towards the end of the month. I don't know if you'll save thousands, but you'll definitely do better by closing towards the end of the month.

Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 740-4478
6 votes
Gregorio Den…, , San Diego, CA
Tue Jul 17, 2012
Unlike conventional loans, FHA mortgages don't prorate or charge per diem interest, you are charged for the entire month, therefore you want to close as close to the end of the month as possible so you are not paying interest in arrears on your current mortgage as well as prepaid interest on your new mortgage.

A good loan officer will time this for you; a bad one won't care and can cost you thousands depending on your loan amount.
Web Reference:  http://WeFixRates.Com
1 vote
Camille Mar…, Agent, Millstone, NJ
Mon Jul 16, 2012
If youare refinancing your mortgage and it is already a FHA mortgage you need to be doing a FHA Streamline Refi and that must close in the same month that it is originated. You do not need to have an appraisal or provide income documentation.

You must also close 5 days prior to the end of the month becuase there is a three day right of recission due to it being a primary residence. You will close and on the 4th day the funds will be wired to the lender for release of the existing mortgage.

If you closing within the past 5 years you may entitled to a refund of the UpFront Mortgage insurance which will be applied as a credit to the closing costs.

Should you need any additional assistance, please give me a call.

Camille Marotta, Branch Manager, 732-539-9300
First Alliance Home Loans, NMLS 9838
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