Tulsa Mortgage : Podcast 29 – Part 1
Steve: This is SteveCurrington.com for the Steve and Tyler show episode number 29, here we go.
Speaker: Welcome to the Steve and Tyler show with Stevecurrington.com and Tyler web.
Speaker: We negotiate the contract for you.
Speaker: All right.
About everything you need to know about mortgages and home loan and more. Nobody knows mortgages like these two. Get ready, because here is Steve and Tyler.
Steve: Hello Tyler. What’s up?
Tyler: What it is?
Steve: What’s up? Tulsa Mortgage, that’s what’s up. Bust it down bruh. Talk about Tulsa Mortgage today.
Tyler: Yes, sir.
Steve: It’s early. These are long days for us people. Getting up at 5:30, six O’clock in the morning to come do podcasting, I mean to tell you it’s a lot of work, but today we’re talking about cash-out refinance. Anybody do a cash-out refinance?
Tyler: I got a few out here lately.
Steve: A lot of people when they’re doing cash-out refinance, what are they doing Tyler? They’re paying off stuff?
Steve: Paying off debts, paying off credit cards, paying off all kinds of stuff right? We’re going to talk about what not to do, because we’re on the not to dos. We’re going to talk about what not to do when doing a cash-out refinance. Go ahead Tyler with one thing we shouldn’t do.
Tyler: One thing we shouldn’t do. Don’t stop making payments.
Steve: That’s revolutionary. Say that again.
Tyler: Don’t stop making payments.
Steve: Don’t stop. Get it get it. Yes, late payment on a lot of credits gets a lower credit score; we just talked about that in the previous podcast right? Don’t do that. Don’t call – We’ll let me take that, call me, but you should feel silly if you called me and said, “Do I need to make my mortgage payment? Do I need to make my car payments since we’re paying those off?”
Yes, unless you want a late fee. I mean what’s up that happens? You’re doing a refinance, you’ve got a problem with your house or repair that needs to be done, the roof needs to be fixed something needs to be fixed, so you don’t make a payment on the first, take your three weeks to get it fixed and now you’re three weeks behind on your mortgage payment. That’s a bad idea.
Tyler: Big time.
Steve: Big time. What’s next Tyler?
Tyler: Late payment that lasts four months on a mortgage could actually reduce your score and not just that, it could actually prevent you from getting a loan, so you may have an improvement yesterday and then here we are and you’re 30 days late today.
Tyler: Sorry, probably not going to happen.
Steve: I mean honestly, it just probably is not going to happen. You’re going to crying crocodile tears people if that going to happen. What is this sound? You’re going to be crying if that happens. You’re going to be crying crocodile tears if that happens. Tulsa Mortgage is not going to happen. You might get a Mexico mortgage if that happens, but yes so a late payment on any type of open credit is bad, but especially mortgage we talked about in a previous podcast, but we get that question a lot from people it’s like, “Well, we’re paying all these off, so I need to pay them.”
The other thing is, “We just rented this and it worked out I guess,” but if you’re going to pay the, off, don’t just go pay them off before you close, because sometimes you have the money to do that. It’s not that it’s the end of the world, it’s just it’s going to cost us more issues. It’s just going to require that we get more documentation to document.
Tyler: We just had that happen. It wasn’t in refinance, it was in a purchase, but –
Steve: They’re paying off debt to qualify?
Tyler: Yes, paying off Saturday, we had it all set up, everything was ready to go, we were just going to pay everything in closing with money we already had verified, everything was fine, but then she actually went out and paid everything all on her own before closing which –
Steve: It worked out.
Tyler: -we made it work.
Steve: Yes, it worked out, but it just was a little bit more stressful and a little bit more time, because we order credit sups for all of them and so do you know what I’m saying?
Speaker: Saying what weird?
Tulsa Mortgage Speaker: All of it.
Steve: You know what I’m saying? What?
What. What. Bring it back. Bring it back.
Steve: I’ve found these sounds do have a toast. Don’t make the mistake of missing a payment while you’re on process, because people have done it and it’s painful when I have to call you and tell you that you don’t qualify for a loan anymore, because you missed a payment. Look busy, okay. We’re all busy, especially when you do in a cash-out refinance, all those debts that you’re paying off or you wanted to pay off, you need to make sure you’re continuing to make payments on their due dates, because otherwise they’re just going to make the payoff higher and it’s going to be more painful, because you’re going to have to pay late fees and your credit is probably going to be messed up. If your credit score drops, your rate is probably going to go up, your approval is going to be affected, there’s going to be lots of things that happen.
I wrote this down, a statistic many people think that since they’re paying off their mortgage, they can make their payment on their current loan late or not all. Tulsa Mortgage My mortgage is due on the 15th, but I think aren’t we closing? Let me take that back. You have a 15-day grace period; most people do with mortgage is due on the 1st, not late till the 16th. Some people – hey Zack Collins what’s up? Zack on Facebook – some people think, “Well, we’re closing on the 10th anyway on my refinance. I already made my payments this month.”
Here is the big piece of that, when you make your mortgage payments, Zack this is a good thing for you to know. Zack when you make your mortgage payment, you’re actually paying the interest that was due the previous month. When you make your payment on the 1st of July, you pay the interest that was dues for June. That’s how it works. If you don’t make your payment until the 10th or you don’t make it at all, then let’s say we do close on your loan on the 11th and it funds by the 14th and your payoff goes in before it’s late, it costs you the same amount of money, because it just means your payoff is going to be higher which means you’re probably going to bring more money to the table or get less back. You’re not skipping payment. You’re not missing a payment.
Now if you close in July, you don’t have a payment due on August 1st, your first payment will typically be due on September 1st, so you are kind of skipping a payment there, but you’re really paying the interest from the 10th or 12th or whatever day of the month your loan fund is due at the end of the month, so kind of making an interest only payment. If you think you’re skipping and you save money, because you didn’t make a payment because you’re refinancing and Tulsa Mortgage you’re going to pay-off a loan, you didn’t save yourself any money, the payoff is just higher. If you make the payment, then when I get the payoff Tyler, what is it going to say? It’s going to have interest from the 1st of July to the 12th. If you don’t make the payment, it’s going to have the 1st of June to the 12th of July. You have 42 days of interest. It’s not really saving you anything to not make your payment.
People ask that all the time, well do I make my payment? Yes. This Tulsa Mortgage guy says, “Yes, make your payment on everything all the time.” Why would you change that? Keep doing what you’ve always been doing. Make all your payments always.”
Tyler: Well, we’re in a world where anything can happen, so what if you have the money to make your mortgage payment, and say we’re supposed to close at a certain time and a title issue pops up.