I wanted to be sure I would have enough money to pay off the rental house mortgage this month so I went ahead and requested a payoff quote. The bank made me go through a long phone recording and finally I could pick between a faxed quote for an extra $30 charge or a quote by mail. Gee, I wonder which one to choose? The total came to $3,425 which is around $26 more than what I expected but that is not a big deal. They will mail the quote and then I will have to get a cashier's check from the bank and mail it to them with the quote.
Now I just have to wait for the quote to arrive and wait for payday and rent day to arrive on the 25th. Only one week from tomorrow and, if all goes well, I can finally finish this major step and move on to the next goal.
I recall my payoff notice and final payment on my mortgage back in 1998. My lender did not charge me for the notice. But instead of going through the time and expense of getting a bank check, the lender allowed me to make my payment electronically, the same way I had been making my monthly payments. All I had to do was fax them a special letter specifying the amount to be withdrawn from my account. (I was able to fax it from my PC so I did not have to go anywhere.) The amount was taken on the specified date and I soon received the stock certificate (I am in a co-op, so that is the official proof of ownership) and that was all she wrote.
In competitive markets, prices fall when production costs fall. So if manufacturer A can produce widgets 10% cheaper than manufacturer B, A will price their widgets lower than B. If B is able to cut its costs to match A's costs, B will reduce its prices.
So when landlord costs decrease (property tax cuts, mortgages retired or refinanced), how come rents go up instead of down?
Yaay, yaay, yaay.
Anonymous. Thats because that is how markets work. The cost is based on what people are prepared to pay. If no-one wants to rent they will go down. If people are worried about buying or cant get a mortgage then they rent and the value of renting goes up.
Actually it is a little bit more complicated than that: Anonymous the First is focusing on the supply side while Lizzie is focusing on the demand side. Elasticity and shape of demand and supply curves can vary significantly with factors unique to any given location.
Daisy, do you have the option to send the final payment by wire instead of cashier's check? That will be much faster, and the bank's fee for the wire will probably be comparable to the cashier's check fee.
Perhaps if I call the bank and talk to a human instead of an automated service I might find there are other payment options besides a cashier's check. That was the only option given by the recording. I wonder what would happen if I almost paid it off but not quite using the usual transfer method. Would they charge me the regular $800 mortgage payment on the first and then have to give me a refund? Or would they only take what I owed? I am tempted to try it that way just to see what happens.
Do try it and keep us updated!
Daizy, what you could do is what you already suggested - pay off nearly all the rest of the mortgage except for about $800, making sure the $800 is slightly more than what you will need to pay to completely satisfy the remaining balance. Then you will receive a small refund after your last payment. You should call your bank and talk to a HUMAN before you try this, of course.
Something similar to this happened to me when I refinanced my mortgage in the early 1990s. Not wanting to go through the time and expense of getting a bank check for the partial month's interest when my new bank's lawyer met with my old bank's lawyer (I did not have to be present), I prepaid my next month's mortgage payment (no electronic payment back then)before their actual closing date so I got a tiny refund from the old bank for the interest overpayment.
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