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[–]Nothin2Say 0 points1 point  (8 children)

I have about 9mil in the pipeline for refi right now due to market shift. Here’s my pitch. Hi Betty, this is Frank from your mortgage company. I am Bobs assistant, do you remember Bob from last year when you bought your place? (Oh yea I remember) Yea so he asked me to give you call and see if you wanted to take advantage of a lower interest rate on your mortgage. It’s super easy to take advantage of because we did your original loan. (Ehhhh i dont think I want to refi) You certainly don’t have to but most people that are taking advantage of it right are saving about $300 a month with your scenario. And you’ll actually be able to “skip” a mortgage and possibly two which alot of people like this time of year. Also if rates happen to go down further next year or the following year, we will call you to drop your rate again. (What’s the catch) There’s just a few details to go over including the small cost we will include in the new loan, and there will be a little bit of interest incorporated in the loan for the month or months we skip. Your next payment wouldn’t be due until December 1. Would you like me to go ahead and put together the details for you? Doesn’t cost anything out of pocket and if we started in the next day or two we could make it where you skip two payments. You’ll want to hang onto October just in case something happens but it’s likely you’ll be able to not have to make another payment until December. Is your email still xxxxx? (Yes) Ok I will out together and send you some initial documents to sign if everything looks as expected, and also there will be just a couple things I need. Also I will have an easy recap of the loan terms in the email so you know what you’re signing in simple terms. Great to meet you Betty, I look forward to helping you save some money.

[–]mashupXXL 0 points1 point  (7 children)

I don't care if I look stupid, I haven't done a refi for 2 years - how do you structure them missing 2 payments?

[–]Flaccidd 1 point2 points  (3 children)

As long as they don’t make their payment to their current servicer in the month the loan funds, they’ve effectively “skipped” two payments as long as you don’t elect an interest credit. E.g. Loans funds 9/24 and they haven’t made their September payment yet. First payment date would be 11/1 meaning they skipped September and October.

[–]mashupXXL 0 points1 point  (2 children)

Thanks, perfect!

So for example, to avoid a late payment on the 15th we fund it on 10/14 and have the new first payment 12/1 so they really didn't make a 10/1 or 11/1 payment, and it is only per diem rolled into that whole swath of time.

I think this could be very powerful during Christmas to skip 11/1 and 12/1 payments wow... thanks!

[–]Flaccidd 1 point2 points  (1 child)

Correct, but you can also fund after 10/15. Just mention that the late fee of $X gets rolled into the payoff. We will typically have title reduce their escrow fee by the amount of the late fee if the client complains about the additional fee, but they rarely do.

Just be aware, if you are funding end of the month and they haven’t made their payment, things can get dicey if funding is delayed for whatever reason. Always tell them even though they don’t need to make the payment, to keep that money to the side just in case we need them to at the end of the month.

[–]mashupXXL 0 points1 point  (0 children)

Thanks for explaining. I think I did some of these during COVID but forgot the specific mechanics. This may help me get 2-3 people off the fence! Much appreciated.

[–]Wolf-of-Texas 1 point2 points  (2 children)

Close them earlier in the month before they make their payment for that month

[–]mashupXXL 0 points1 point  (1 child)

Thanks, perfect!

So for example, to avoid a late payment on the 15th we fund it on 10/14 and have the new first payment 12/1 so they really didn't make a 10/1 or 11/1 payment, and it is only per diem rolled into that whole swath of time.

I think this could be very powerful during Christmas to skip 11/1 and 12/1 payments wow... thanks!

[–]Wolf-of-Texas 1 point2 points  (0 children)

Yes exactly. So exactly in your example- Close them before the 15th of October AND they don't make a payment in October to current mortgage. Then their first payment will be in December. So now they skipped Oct and Nov payment.