Zillow Advice: Refinance - Refinance Timing and "skipping" a Monthly Payment http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ Zillow Advice | Zillow Real Estate I never recommend a client ... http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ I never recommend a client to not pay the current payment if we are closing at the end of the month.&nbsp; You risk having a 30-day late on your credit report.&nbsp; Be safe and make the September payment. Thu, 29 Aug 2013 02:17:00 GMT http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ 2013-08-29T02:17:00Z Good point Justin, option ... http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ Good point Justin, option 1 calls for more money, but that's because a portion will go towards the principal and a portion will go towards escrow. Like you pointed out, we'll get that escrow back. See, I just need to talk it out with someone! Thanks again all. Thu, 29 Aug 2013 00:14:00 GMT http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ 2013-08-29T00:14:00Z I don't see why you think ... http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ I don't see why you think Option 2 would call for less money in the payoff.&nbsp;&nbsp; It will call for more money in the payoff having double the interest and double the monthly MIP. If you are thinking your upside is to "skip" 2 payments instead of one, all of money from the September payment would be relfected dollar for dollar in your updated payoff, with the exception of the portion of the September payment that goes toward your impound account, which you then get back from your servicer in refund a few weeks aafter closing.<br/><br/>As others have mentioned, best is to plan to pay September and then order your payoff once it posts, don't mess around with going late there isn't really any upside to it. Thu, 29 Aug 2013 00:07:00 GMT http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ 2013-08-29T00:07:00Z An equally important issue ... http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ An equally important issue is to make sure your FHA loan pay off reaches lender by 1st of Oct.&nbsp; There is a 3 day right of rescission so closing would need to take place by 25th of Sept to fund by wire to current lender.&nbsp;Penalty for going beyond first of the month to pay off an&nbsp;FHA loan is 30 days of additional&nbsp;interest. As far as Options, you are paying the same amount of interest, but i&nbsp;would avoid Option 2 as being too risky. Wed, 28 Aug 2013 22:39:00 GMT http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ 2013-08-28T22:39:00Z If you fund your loan&nbsp;within ... http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ If you fund your loan&nbsp;within the first 15 days of the month, you can use option 2. <br/>Otherwise, most Lenders will not fund a loan in option 2. The loan must be current when the updated payoff comes in from the old lender.<br/>&nbsp;<br/>All The Best!<br/> Wed, 28 Aug 2013 20:53:00 GMT http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ 2013-08-28T20:53:00Z You are correct in option ... http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ You are correct in option 2 and how it works.&nbsp; You are gambling a bit.&nbsp; If anything happens to delay funding before the end of September you will go 30 days late and that will be a major problem.&nbsp; I have used this method for clients in the past but I always make sure to allow extra time for rescission and funding to make sure they are protected. Wed, 28 Aug 2013 20:36:00 GMT http://www.zillow.com/advice-thread/Refinance-Timing-and-skipping-a-Monthly-Payment/509051/ 2013-08-28T20:36:00Z