Posted on: 15-04-07 00:27:40
Hi,
I've got a question related to my mortgage.
My house closing is on 15th May and the first mortgage due (bi weekly payment) is scheduled to be collected on 29th May (bi-weekly payment). My Mortgage broker informed me that my "Interest adjustment Date" is 29th May.
I don't understand this at all.
If I am on Monthly payment plan, it is acceptable that the IAD is 1st June and my monthly payment will start on 1st July. This means I might be paying interest from 15th May till 30th June upfront and the interest for the month of june will be collected in July 1st.
But how does this IAD work with bi weekly payment? Is it really logical to relate IAD and bi-weekly payment, Please share your idea.
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:
Originally posted by JRF
Hi,
I've got a question related to my mortgage.
My house closing is on 15th May and the first mortgage due (bi weekly payment) is scheduled to be collected on 29th May (bi-weekly payment). My Mortgage broker informed me that my "Interest adjustment Date" is 29th May.
I don't understand this at all.
If I am on Monthly payment plan, it is acceptable that the IAD is 1st June and my monthly payment will start on 1st July. This means I might be paying interest from 15th May till 30th June upfront and the interest for the month of June will be collected in July 1st.
But how does this IAD work with bi weekly payment? Is it really logical to relate IAD and bi-weekly payment, Please share your idea.
Hi JRF,
Please follow this http://www.canadiandesi.ca/read.php?TID=16793&page=1#96736
Since you are choosing bi-weekly payment and your mortgage is closing on 15th May, 2007 your bank would start collecting mortgage instalment from 29th May, 2007 and as such there is no interest adjustment date in your case.
Moreover, the interest adjustment date is almost never be in middle of the month but would most likely be the 1st day of the month preceding the mortgage closing.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramod,
Thanks for the reply. As you've stated in an earlier thread about relationship between IAD and Bi-weekly payment, I was sticking to the same, meaning there wouldn't be an interest adjustment date if bi-weekly is chosen.
(There has been a mistake with the date also. Sorry about it, Closing is May 3rd).
What confuses me is the email I received from Lending org. It states that the interest adjustment date is May 17th (closing is on May 3rd). Still confuses me.
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:
Originally posted by JRF
Pramod,
Thanks for the reply. As you've stated in an earlier thread about relationship between IAD and Bi-weekly payment, I was sticking to the same, meaning there wouldn't be an interest adjustment date if bi-weekly is chosen.
(There has been a mistake with the date also. Sorry about it, Closing is May 3rd).
What confuses me is the email I received from Lending org. It states that the interest adjustment date is May 17th (closing is on May 3rd). Still confuses me.
May be then your financial institution (lender) is doing things differently. Any ways it does not affect you much as on the IAD (if at all there is any) they should only be taking the interest amount till that time which might be lesser than the total mortgage instalment. Why not seek clarification from your mortgage broker and lender and find out if this is interest adjustment then what amount you expect them to take out from your bank account on the Interest Adjustment Date.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks Pramod.
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
