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Refinancing principal not adjusted on GFE

I am closing my refinance tomorrow. But I see a problem with the principal (initial loan) amount that the lender has put in the updated GFE and HUD document. The lender is using the same figure from a month and a half ago, but I have paid my mortgage twice since then and he has not adjusted the principal. My mortgage balance is now more than $2000 lower than when the lender did his initial estimate. What should I do?
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November 14 2012 - US
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Best Answer

Great question! Ask for the lender to email you the loan contract and HUD prior to scheduling the signing.  Review both and if it's still not corrected, do not sign.  It shouldn't come down to that though, because quite frankly...it's an extremely easy and common fix. 

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November 14 2012

Get a copy of the payoff.  Just know that the principal balance will always be lower than the actual payoff amount because you pay your mortgage interest in the arrears.

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November 15 2012
If your original terms had you paying -0- at closing, then you are going to get cash back from closing now, up to the max which is determined by the type of loan program you are doing. If it exceeds the max cash back then the difference will probably be applied as a principal reduction which will not affect your new payment. Were you originally planning to bring money to closing, like to pay the prepaids? 
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November 14 2012
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Clay,

I did not make extra principal payment. The principal on my monthly mortgage is over $1000.
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November 14 2012
doogod, the payoff is not reflected on the GFE, neither is the cash to close figure. Did you make a large extra principal payment along with your last 2  regular mortgage payments? That is the only way for your loan balance to have dropped $2,000. It may be your lender knew you would make 2 payments before closing, accounted for that in their estimated payoff. In fact, that is the way I calculate a new loan balance.  
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November 14 2012
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Thank you, Alex.
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November 14 2012
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I have already contacted my lender asked him to reflect the changes. The payoff on my current loan is more than $2000 than the payoff the lender had assumed a month an a half ago when he did the original GFE. My question is, what if the GFE and HUD at closing do not reflect the updated payoff statement? What is my recourse?
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November 14 2012
How much is you monthly payment on your current loan, $1000?
 
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November 14 2012
get a new payoff figure
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November 14 2012
That should be an easy fix.  Contact your lender and let him know exactly what you stated above.  He should then request and updated payoff and adjust the GFE and HUD accordingly. 
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November 14 2012
 
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