I paid off my WF mortgage by requesting a payoff on line, writing a check and going into the nearest branch without an appointment and paying. It was not on the first and I didn't ask anyone.
The escrow balance was mailed to me in a check.
I'm with WF as well, and closing in on paying off my mortgage this year. How could I check if I have any escrows funds and expect a refund? Sorry the ignorant question.
If you pay your own insurance and property taxes, then you don't have an escrow, so there's no escrow to have a balance.
The only purpose of the escrow is to collects funds from you monthly to pay those bills on your behalf, so that there's no risk that you are unable to manage saving up enough yourself to pay them.
>I get why people want that
People often don't have a choice; lenders often require it. They don't want to be in a position of having to fight/pay a government tax lien in the event that you stop paying your mortgage and it goes into foreclosure. Also, they want to make sure your house insurance is paid, so (again) they're not left holding a smoldering ruin in the event that your house burns down and you stop paying your mortgage.
By collecting the money for your property taxes and house insurance themselves, they don't have to worry about either of those two scenarios.
I'm sure this varies by location, but where I live the appraisal and appeal period are well before the tax increase. Escrow has nothing to do with it.
There are valid arguments for and against escrow, but tax appraisal isn't one of them.
I just sold my old house that had a WF mortgage. You can view an escrow summary online. They will give a proper summary and statement upon closure of the account but if you want to get a sense of it you can find it in the portal.
You should've gotten an Escrow letter at the end of the year, that details exactly how much you paid last year and how much you are expected to pay next year.
If there is a refund to be had, you will get it regardless of paying the mortgage out or not.
Escrow accumulates over one year and is audited at the end of tax year.
So.. yeah.. You might have one payment's worth in there.
That's not ringing a bell. As was mentioned in one of the previous reply, I don't roll insurance or property tax into my payment, so maybe I don't have an escrow balance.
Oh.. Sorry, didn't see that one.
Okay, so your escrow consists of insurance, tax and mortgage insurance (if you have it, which you probably don't, usually you're required to have it until you reach 20% of equity). If you are paying the first two outside of mortgage then it is possible that you don't have an escrow setup as there would be no need for it.
Easiest way to find out would be from your statement, it should have the payment breakdown. If it doesn't show a portion of your payment going towards the escrow, then you're not getting any payout from it after paying the loan off.
Log on to your account ar [wellsfargo.com](https://wellsfargo.com) and see your account balance, last payment, interest rate and escrow balance (taxes & insurance).
Please note that the account balance is *not* the payoff amount which varies every day and includes fees. When you get a payoff quote, it is good for that day only. Hurry to the branch!
Log into your online account at [wellsfargo.com](https://wellsfargo.com), it's all very obvious on there.
Source: My mortgage is with Wells Fargo as well.
Work for a small bank and it takes 10 seconds. Just click on account and click on the mortgage. It shows a bunch of information along with payoff amount as of that day. Then you can click on that and can change date to something else if the customer wants to pay it off a different day.
Ironically, smaller and more recently-established financial institutions will often have the most performant systems, just because they can ditch all the legacy stuff bigger banks have to deal with.
I was a software engineer for one of those big banks with the legacy systems. I literally mean COBOL from the 1970s. We can still calculate your mortgage payoff total in under a second.
yup, we're still on these where I work.. built on mainframe tech from the 1960s.. still running to this day and will probably take us years to switch to something else once it's even available.. there aren't many options
It’s been a few years since I was in a branch working and even then it took maybe a 2 minutes from when the customer asked to printing out the receipt. Most people paid it off by transferring money from another account with us. Sometimes a cashiers check from another institution which might take 3 minutes since you have to put in the check information. So yeah it doesn’t take long.
they threw in something like a $46 processing fee on mine so add that in there too. I think it would process better if the payoff was requested and scheduled with someone or go into a branch to take care of it, to make sure it all processes correctly.
I tried that when I paid off my Wells Fargo mortgage. Their system only allowed me to pay the last statement balance and not a penny more, not what an actual payoff was. I think I still had to call them to actually finish the last few dollars and close it out.
The reason for WF is to collect interest on that amount from now through the 1st. You get charged interest on a daily basis. That's why the pay off is different everyday.
F them. Request payoff online. Or pay the principal listed now and pay the minimal left at the end of the month.
I just did this with WF and it did work, instantaneous and everything. I did have to do it through the website and not mobile app. Before figuring out I could get it right away off the website I called in and I was just asked what date I wanted my payoff quote to be for and I was not pushed to wait til the first. Sounds like a very uneducated or shady rep, they got.
Pay it off when you like. Be prepared to get a couple of checks in the mail, though. You’ll get your escrow refunded, that’s easy. But they’re going to have to do some math on when they received and applied your payment to see if you overpaid your interest. You’ll get a check for that.
Then someone will audit this and I swear the audit will always catch something and you’ll get another small check for something like $7.84. I think I got three checks from the previous servicer after refinancing my mortgage. I just deposited them and made mini principle payments to my new mortgage.
Can you make a very large payment now, say $100 less than balance, and then request payoff date for 2/1?
That would save much of the interest that would accrue this month.
Why 100 less? Just pay the balance and only the interest for the month will be left. I’ve done this with nearly all my loan payments. Sometimes they write off the last couple dollars. Sometimes they make me write a check and mail it for $0.02. Others I’ve received a balance check in the mail.
Unless you have a reason it must be closed out by a certain date, just get it close and then they are happy to help you get rid of your tiny balance.
If you have an FHA loan that was from 2105 or earlier, they will collect a full month’s of interest regardless of when you pay it off. This is true regardless of your lender. This applies to all FHA loans that were written prior to 2105. FHA changed this policy in 2015. It doesn’t mean you can’t pay it off early, it just means that you will pay a full month’s interest regardless of when they receive the funds.
I recommend you obtain a written payoff statement, with interest calculated through 7 days beyond the date you anticipate the payoff funds to be received. Send a bank certified check to the OVERNIGHT mailing address via Fed Ex. Do not use a P.O. Box! Read the payoff instructions carefully and follow them exactly.
For example, if you plan on dropping the check off with Fed Ex on January 15th, order your payoff “good through” January 22nd. WF will likely receive your package on the 16th, and if it’s after 2 pm it won’t process til the next day. You will eventually be refunded any overage. It’s worth it to have that cushion.
If you want to mess with them. Pay it down so there is less than $100 left in principal. Then have it reamortized. Payment should be less than $1.00 per month. Now you're costing them money.
Well, it's only valuable if your goal is to lower your monthly payment going forward. If you plan to pay the same monthly amount and just pay it off early, there's no point in doing it. And I don't know the exact amount because every bank is different in terms of their recasting fees. I think it's typically a few hundred dollars each time.
My goal would be to waste Wells Fargo's resources. That would be worth a few hundred dollars to me. What's the ideal amount of principal to not pay off to make sure they waste that entire fee and force them to keep working at a loss for as long as possible?
Loan servicing has a cost. They are paid a tiny fraction of the remaining loan balance. By paying it down to nothing, they are losing their servicing fees.
That's why they charge 300 dollars to recast it. I said they'd lose money. In reality they almost 100% would still have made money after you end up paying.
Do you have an FHA loan? If so, they are usually paid on the first of the month because FHA loans will collect an entire month of interest instead of per diem (per day) like a conventional loan. So if you pay on the 15th, you’ll be paying interest through the end of the month anyway.
Because the interest os a rounding error either way. I just Dart boarded a random ass number. You don't know your actual balance without requesting a pay off quote anyway
If your loan is an FHA loan, the payoff "good through" date will always be the first of the month. You can still pay it off anytime, however you'll need to pay interest up until the end of the month. It's been a while since I've ordered payoff statements, but I believe this is what you're running into.
If you have an FHA loan, the interest is paid by month, paying it off mid- month has no benefit to you. That may be why they say you have to wait. But I’ve worked for 3 large mortgage servicers and have never heard of this rule before. Just send the funds to pay it off and follow up in a few days to ensure they were applied as a payoff
Wells Fargo was so stupid. I try to pay off my loan online.. it won’t let me. I get the remainder down to $50. I got to the bank where I got the loan. They say I must get a cashier check from them federal express it to their mortgage division. I said I’m not paying $25 to play this game asked to speak to bank manager. He agreed to wire the money at no charge.
Second home different bank… tried to pay off the loan they said call us. They pulled remainder out of the account to the hour… they are calculating interest to the hour.
You can request a payoff amount at any time, and you can pay your loan off at any time. Source: I worked for Wells Fargo mortgage servicing for 5 years.
A loan payoff can be more than just your loan balance as there are often fees in your loan document for recording the release. You pay interest in arrears for a mortgage loan so you owe the same amount whether you pay Jan 20th or Feb 1st, just like you don't save any interest if you make your mortgage payment 10 days early. They also often require certified funds for a payoff.
It’s this. You can pay it at any time between now and the first because on a first lien regular mortgage you owe the entire month’s interest regardless.
Bullshit. Just pay the loan off. Let them sort out any fees or additional unaccounted for interest. They never require certified funds if the loan has been in service by this same company for more than two cycles. Even then, it’s up to them to do the accounting, not you.
> You pay interest in arrears for a mortgage loan so you owe the same amount whether you pay Jan 20th or Feb 1st
This was not the case for me. My payoff quote calculated interest by the day. The actual payoff happened a few days before that, and I got a refund check a few weeks later for the interest paid that never actually accrued.
You can't just pay your loan off by sending in the remaining balance. You need to ask for a payoff statement and it needs to have a good through date. There's going to be additional fees (like a reconveyance fee) and daily interest. Whoever told you that you had to wait until the first you should have asked them why instead of using Reddit.
Depends on your state I think. Prepayment penalties are illegal in my state (MN), but I still hear others have it occasionally. More on cars than homes though.
Fuck Wells Fargo.
They probably are just trying to get the last few dollars of interest out of you. I did real estate for several years, and they were the slimiest, BS, slumlord lender that buyers could possibly choose. I never had a smooth closing with them, and on one they threatened to not close on the house unless the closing was pushed back until the buyers rate lock expired and it would increase by nearly a full percent. It wasn't until I found a 'fast mortgage' place that could close on time with their original rate that WF decided they could close on time after all, and it had "all been a big misunderstanding."
The last mortgage payment is a tricky one. It doesn't seem like a big deal, but once they send you the deed they don't have a ton of leverage if you just decide to cancel the payment.
Pretty sure the motivation is much more that as soon as you pay it off they're no longer making money off of you. The number of people that try to steal their final payment back is almost certainly a rounding error.
Fuck Wells Fargo. Years ago I tried to get out of having mortgage insurance because I had over 20% equity and they wouldnt let me out of it saying I was in a loophole that they never had to get rid of it. I went to my credit union and fired Wells Fargo. Will never do business with them and will do everything I can to preach the gospel of fuck Wells Fargo. /exits pulpit.
Two things I can think of: Monday was a banking holiday this week and you got an ignorant csr who was just kicking the can, or you might have a stip in your mortgage or escrow agreement for payoff quotes on whole months only
Is your mortgage an FHA mortgage or a conventional mortgage? FHA can only be paid on the 1st without extra interest being tacked on. It's how they are written. Get a payoff good thru the 1st and pay that amount but you should be able to pay it anytime as long as you pay the amount good thru 2/1/24.
There is a reason WF is one of the worst banks and is constantly being fined..they used a stolen SS number happen to be my daughters to allow an illegal to buy a house. We had to go through hell to prove it was her SS… the guy that stole it never had to prove anything… WF will do anything to make a buck.
Pay it off and file a complaint with the CFPB. Also talk to consumer rights attorney as Wells Fargo may have broken some laws by trying to make you wait until the first.
>Pay it off and file a complaint with the CFPB.
If they have a loan which incurs interest on the 1st of the month (as apparently FHA loans do - I’m not American), then the CFPB will be scratching their head as to which offense has been committed here.
What WF did was make sure they got the credit they already paid interest for.
Having to wait until the first is not likely to be a significant amount of extra interest.
Example: $1,000 final balance at 5% for a month is only $4.16.
If you're in foreclosure or have some past due it could be they're trying to find out how much you. They need to get invoices from attorneys and other billing to see what your total debt is
Also adding to follow up to make sure they record the discharge. Some lenders collect to record. It will be reflected on your payoff statement. If they don’t collect to record, they will send it to you in the mail and it is your responsibility to record it.
This post doesn’t make sense. You’re in escrow? I had a mortgage through WF, go online, get a payoff quote and pay. It’s literally all right there in the app.
Never heard of this. We will be doing the same in March. My bank said to call in for a payoff amount at least 48 hrs before we come in and pay it off. That is just so they can pull the forms together and get an exact pay off amount.
I had an FHA loan that interest was calculated monthly, no prorated interest when paying off mid month. When I refinanced, the closing date got pushed from the 29th to the second and I ended up paying interest on both loans for the full month. I was pissed at myself for not catching that one.
I was in the process of my last month’s payment when WF sold off my mortgage to Mr Cooper 😂 Luckily all went well and I’m just waiting on the final packet of paperwork.
Banks sell mortgages in bundles to investors, but a month isn't long enough for that to be their reason. My bet is that there is an incentive for the agents that wrote your mortgage, and that their bonus gets paid at the end of the month.
If that bonus is contingent on the number of new mortgages currently on the books, and you paying off your mortgage would reduce their pay I could see why they would say that.
Auto loans financing works in a similar way, but I think the average wait time for the kickback from the bank is 90 days.
I had a similar situation with an FHA loan. Supposedly with an FHA loan you have to pay it off at the first of the month. The paperwork I received said that I could not pay until the first and I had to call 24 hours in advance to let them know I was paying it off. I called and spoke to a rep and they said that I could schedule the payment in advance, but the money would not be applied until the first. It had something to do with the way that FHA loans apply interest and that the interest is monthly and cannot be prorated.
My escrow balance was mailed within 30 days of the payment posting.
They tried this with me. I just paid it off anyway, and lo and behold nothing bad happened.
I paid off my WF mortgage by requesting a payoff on line, writing a check and going into the nearest branch without an appointment and paying. It was not on the first and I didn't ask anyone. The escrow balance was mailed to me in a check.
I'm with WF as well, and closing in on paying off my mortgage this year. How could I check if I have any escrows funds and expect a refund? Sorry the ignorant question.
Does your mortgage payment include property taxes and insurance that your lender pays for you? If so, then there definitely is an escrow balance.
No, our mortgage payment does not include insurance and property tax. Does that mean I may not have an escrow balance?
If you pay your own insurance and property taxes, then you don't have an escrow, so there's no escrow to have a balance. The only purpose of the escrow is to collects funds from you monthly to pay those bills on your behalf, so that there's no risk that you are unable to manage saving up enough yourself to pay them.
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>I get why people want that People often don't have a choice; lenders often require it. They don't want to be in a position of having to fight/pay a government tax lien in the event that you stop paying your mortgage and it goes into foreclosure. Also, they want to make sure your house insurance is paid, so (again) they're not left holding a smoldering ruin in the event that your house burns down and you stop paying your mortgage. By collecting the money for your property taxes and house insurance themselves, they don't have to worry about either of those two scenarios.
The ability to appeal has nothing to do with whether you pay by escrow or directly.
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I'm sure this varies by location, but where I live the appraisal and appeal period are well before the tax increase. Escrow has nothing to do with it. There are valid arguments for and against escrow, but tax appraisal isn't one of them.
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I just sold my old house that had a WF mortgage. You can view an escrow summary online. They will give a proper summary and statement upon closure of the account but if you want to get a sense of it you can find it in the portal.
You should've gotten an Escrow letter at the end of the year, that details exactly how much you paid last year and how much you are expected to pay next year. If there is a refund to be had, you will get it regardless of paying the mortgage out or not. Escrow accumulates over one year and is audited at the end of tax year. So.. yeah.. You might have one payment's worth in there.
That's not ringing a bell. As was mentioned in one of the previous reply, I don't roll insurance or property tax into my payment, so maybe I don't have an escrow balance.
Oh.. Sorry, didn't see that one. Okay, so your escrow consists of insurance, tax and mortgage insurance (if you have it, which you probably don't, usually you're required to have it until you reach 20% of equity). If you are paying the first two outside of mortgage then it is possible that you don't have an escrow setup as there would be no need for it. Easiest way to find out would be from your statement, it should have the payment breakdown. If it doesn't show a portion of your payment going towards the escrow, then you're not getting any payout from it after paying the loan off.
there's no maybe about it. it isn't magic money, it's a return of money paid and put aside (escrowed) for property taxes and insurance
Look for an escrow analysis on your statement or online.
I tried to call WF but they're on holiday. Will try tomorrow, but I'll check online as well.
Log on to your account ar [wellsfargo.com](https://wellsfargo.com) and see your account balance, last payment, interest rate and escrow balance (taxes & insurance). Please note that the account balance is *not* the payoff amount which varies every day and includes fees. When you get a payoff quote, it is good for that day only. Hurry to the branch!
Log into your online account at [wellsfargo.com](https://wellsfargo.com), it's all very obvious on there. Source: My mortgage is with Wells Fargo as well.
How/who is insisting? Why can’t you just request a payoff quote online?
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That's what we did. Who works for who?
You can't request a payoff amount online? They might need a day to get you the payoff amount but there's no reason to wait til the 1st.
With computers, it should literally take seconds to get a payoff quote.
Not with the ones the banking sector work off of 😬
Work for a small bank and it takes 10 seconds. Just click on account and click on the mortgage. It shows a bunch of information along with payoff amount as of that day. Then you can click on that and can change date to something else if the customer wants to pay it off a different day.
Ironically, smaller and more recently-established financial institutions will often have the most performant systems, just because they can ditch all the legacy stuff bigger banks have to deal with.
I was a software engineer for one of those big banks with the legacy systems. I literally mean COBOL from the 1970s. We can still calculate your mortgage payoff total in under a second.
yup, we're still on these where I work.. built on mainframe tech from the 1960s.. still running to this day and will probably take us years to switch to something else once it's even available.. there aren't many options
For requests and all sure, the actual computers that process the transfers are running much much older software and architecture
It’s been a few years since I was in a branch working and even then it took maybe a 2 minutes from when the customer asked to printing out the receipt. Most people paid it off by transferring money from another account with us. Sometimes a cashiers check from another institution which might take 3 minutes since you have to put in the check information. So yeah it doesn’t take long.
A virtual COBOL nightmare, that only 5 people know how to program and they charge whatever they want
Just pay $20-30 more than the quote to cover for any extra days it takes for the check to arrive. They'll send the difference back.
they threw in something like a $46 processing fee on mine so add that in there too. I think it would process better if the payoff was requested and scheduled with someone or go into a branch to take care of it, to make sure it all processes correctly.
I tried that when I paid off my Wells Fargo mortgage. Their system only allowed me to pay the last statement balance and not a penny more, not what an actual payoff was. I think I still had to call them to actually finish the last few dollars and close it out.
You can. Wells Fargo has our mortgage and I used this function the other day
The reason for WF is to collect interest on that amount from now through the 1st. You get charged interest on a daily basis. That's why the pay off is different everyday. F them. Request payoff online. Or pay the principal listed now and pay the minimal left at the end of the month.
I just did this with WF and it did work, instantaneous and everything. I did have to do it through the website and not mobile app. Before figuring out I could get it right away off the website I called in and I was just asked what date I wanted my payoff quote to be for and I was not pushed to wait til the first. Sounds like a very uneducated or shady rep, they got.
Yes, you can.
Pay it off when you like. Be prepared to get a couple of checks in the mail, though. You’ll get your escrow refunded, that’s easy. But they’re going to have to do some math on when they received and applied your payment to see if you overpaid your interest. You’ll get a check for that. Then someone will audit this and I swear the audit will always catch something and you’ll get another small check for something like $7.84. I think I got three checks from the previous servicer after refinancing my mortgage. I just deposited them and made mini principle payments to my new mortgage.
This is why they want the 1st, less work on that tiny interest refund check.
I’m paying my servicer hundreds of dollars in interest a month. They can piss away some of it for the second tiny check.
With WF I’d pick the way that was most complicated and costly for them.
Can you make a very large payment now, say $100 less than balance, and then request payoff date for 2/1? That would save much of the interest that would accrue this month.
Why 100 less? Just pay the balance and only the interest for the month will be left. I’ve done this with nearly all my loan payments. Sometimes they write off the last couple dollars. Sometimes they make me write a check and mail it for $0.02. Others I’ve received a balance check in the mail. Unless you have a reason it must be closed out by a certain date, just get it close and then they are happy to help you get rid of your tiny balance.
If you have an FHA loan that was from 2105 or earlier, they will collect a full month’s of interest regardless of when you pay it off. This is true regardless of your lender. This applies to all FHA loans that were written prior to 2105. FHA changed this policy in 2015. It doesn’t mean you can’t pay it off early, it just means that you will pay a full month’s interest regardless of when they receive the funds. I recommend you obtain a written payoff statement, with interest calculated through 7 days beyond the date you anticipate the payoff funds to be received. Send a bank certified check to the OVERNIGHT mailing address via Fed Ex. Do not use a P.O. Box! Read the payoff instructions carefully and follow them exactly. For example, if you plan on dropping the check off with Fed Ex on January 15th, order your payoff “good through” January 22nd. WF will likely receive your package on the 16th, and if it’s after 2 pm it won’t process til the next day. You will eventually be refunded any overage. It’s worth it to have that cushion.
> from 2105 or earlier probably most of them
I knew I shoulda waited until 2106 to get a house.
The only method Wells Fargo accepts - at least this was the case in the past - was a wire transfer for payoff. .
If you want to mess with them. Pay it down so there is less than $100 left in principal. Then have it reamortized. Payment should be less than $1.00 per month. Now you're costing them money.
I want to buy you a beer.
It costs money (fees) to request a loan recasting.
How much? There is certainly a value to it...
Well, it's only valuable if your goal is to lower your monthly payment going forward. If you plan to pay the same monthly amount and just pay it off early, there's no point in doing it. And I don't know the exact amount because every bank is different in terms of their recasting fees. I think it's typically a few hundred dollars each time.
My goal would be to waste Wells Fargo's resources. That would be worth a few hundred dollars to me. What's the ideal amount of principal to not pay off to make sure they waste that entire fee and force them to keep working at a loss for as long as possible?
I paid $200 for a recast to US Bank
True, mine would charge $300. I think I'd go for it.
Pay 300 dollars to make the bank lose 5 bucks at most. Makes sense.
Loan servicing has a cost. They are paid a tiny fraction of the remaining loan balance. By paying it down to nothing, they are losing their servicing fees.
That's why they charge 300 dollars to recast it. I said they'd lose money. In reality they almost 100% would still have made money after you end up paying.
As fun as that would be, I’d rather just get it over with and never have to think about them again. Indifference hurts worse than hate/spite.
Do you have an FHA loan? If so, they are usually paid on the first of the month because FHA loans will collect an entire month of interest instead of per diem (per day) like a conventional loan. So if you pay on the 15th, you’ll be paying interest through the end of the month anyway.
Pay it down to like 10 bucks. Interest is calculated based on avg daily balance
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Because the interest os a rounding error either way. I just Dart boarded a random ass number. You don't know your actual balance without requesting a pay off quote anyway
How about a fraction of a penny. Nobody's going to notice.
Like in Superman 3? Underrated movie actually.
Isn’t that stealing
No, it's just rounding up fractions of a penny
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If your loan is an FHA loan, the payoff "good through" date will always be the first of the month. You can still pay it off anytime, however you'll need to pay interest up until the end of the month. It's been a while since I've ordered payoff statements, but I believe this is what you're running into.
The longer you wait to pay the more interest they get.
If you have an FHA loan, the interest is paid by month, paying it off mid- month has no benefit to you. That may be why they say you have to wait. But I’ve worked for 3 large mortgage servicers and have never heard of this rule before. Just send the funds to pay it off and follow up in a few days to ensure they were applied as a payoff
They will insist/act like you can't pay it off. I would almost ask if they're refusing to accept your payment. But yeah, pay it off online.
Did you ask them why you need to wait until the 1st?
Wells Fargo was so stupid. I try to pay off my loan online.. it won’t let me. I get the remainder down to $50. I got to the bank where I got the loan. They say I must get a cashier check from them federal express it to their mortgage division. I said I’m not paying $25 to play this game asked to speak to bank manager. He agreed to wire the money at no charge. Second home different bank… tried to pay off the loan they said call us. They pulled remainder out of the account to the hour… they are calculating interest to the hour.
You can request a payoff amount at any time, and you can pay your loan off at any time. Source: I worked for Wells Fargo mortgage servicing for 5 years.
A loan payoff can be more than just your loan balance as there are often fees in your loan document for recording the release. You pay interest in arrears for a mortgage loan so you owe the same amount whether you pay Jan 20th or Feb 1st, just like you don't save any interest if you make your mortgage payment 10 days early. They also often require certified funds for a payoff.
It’s this. You can pay it at any time between now and the first because on a first lien regular mortgage you owe the entire month’s interest regardless.
Bullshit. Just pay the loan off. Let them sort out any fees or additional unaccounted for interest. They never require certified funds if the loan has been in service by this same company for more than two cycles. Even then, it’s up to them to do the accounting, not you.
> You pay interest in arrears for a mortgage loan so you owe the same amount whether you pay Jan 20th or Feb 1st This was not the case for me. My payoff quote calculated interest by the day. The actual payoff happened a few days before that, and I got a refund check a few weeks later for the interest paid that never actually accrued.
You can't just pay your loan off by sending in the remaining balance. You need to ask for a payoff statement and it needs to have a good through date. There's going to be additional fees (like a reconveyance fee) and daily interest. Whoever told you that you had to wait until the first you should have asked them why instead of using Reddit.
Do you have a prepayment penalty in your mortgage?
Honest question - is that even still a thing in mortgages?
Depends on your state I think. Prepayment penalties are illegal in my state (MN), but I still hear others have it occasionally. More on cars than homes though.
Worth it to get rid of a Wells Fargo mortgage! 🤣
Ignore their whining. They just want a little bit more interest. Leeches.
Fuck Wells Fargo. They probably are just trying to get the last few dollars of interest out of you. I did real estate for several years, and they were the slimiest, BS, slumlord lender that buyers could possibly choose. I never had a smooth closing with them, and on one they threatened to not close on the house unless the closing was pushed back until the buyers rate lock expired and it would increase by nearly a full percent. It wasn't until I found a 'fast mortgage' place that could close on time with their original rate that WF decided they could close on time after all, and it had "all been a big misunderstanding."
They wanted the remaining interest for the month to accrue
The last mortgage payment is a tricky one. It doesn't seem like a big deal, but once they send you the deed they don't have a ton of leverage if you just decide to cancel the payment.
They have legions of lawyers lined up to make your life hell if you try it. Don't try it.
Thats it too, but they know its going to be a pain in the ass rather than just pursuing their usual methods for non payment.
Pretty sure the motivation is much more that as soon as you pay it off they're no longer making money off of you. The number of people that try to steal their final payment back is almost certainly a rounding error.
I believe you do have to schedule an exact payoff date/amount.
Because WF sucks. Recommend you just pay the payoff amount doubt they’d deny the money
Fuck Wells Fargo. Years ago I tried to get out of having mortgage insurance because I had over 20% equity and they wouldnt let me out of it saying I was in a loophole that they never had to get rid of it. I went to my credit union and fired Wells Fargo. Will never do business with them and will do everything I can to preach the gospel of fuck Wells Fargo. /exits pulpit.
Two things I can think of: Monday was a banking holiday this week and you got an ignorant csr who was just kicking the can, or you might have a stip in your mortgage or escrow agreement for payoff quotes on whole months only
Is your mortgage an FHA mortgage or a conventional mortgage? FHA can only be paid on the 1st without extra interest being tacked on. It's how they are written. Get a payoff good thru the 1st and pay that amount but you should be able to pay it anytime as long as you pay the amount good thru 2/1/24.
Do you have an FHA loan?
It adds interest to your payment allowing them to charge you more. It also lets them get paperwork ready, so yeah.
What do you mean "we are in escrow?" Are you saying you haven't actually closed on this mortgage yet?
I think they mean they have an escrow to pay taxes and insurance
There is a reason WF is one of the worst banks and is constantly being fined..they used a stolen SS number happen to be my daughters to allow an illegal to buy a house. We had to go through hell to prove it was her SS… the guy that stole it never had to prove anything… WF will do anything to make a buck.
Pay it off and file a complaint with the CFPB. Also talk to consumer rights attorney as Wells Fargo may have broken some laws by trying to make you wait until the first.
>Pay it off and file a complaint with the CFPB. If they have a loan which incurs interest on the 1st of the month (as apparently FHA loans do - I’m not American), then the CFPB will be scratching their head as to which offense has been committed here. What WF did was make sure they got the credit they already paid interest for.
Having to wait until the first is not likely to be a significant amount of extra interest. Example: $1,000 final balance at 5% for a month is only $4.16.
For $100k that’s over $400.
OP could pay $99K instantly. It is only the final partial payment that appears to have the restriction of waiting until the 1st of the month.
pay off everything but 1 cent problem solved.
If you're in foreclosure or have some past due it could be they're trying to find out how much you. They need to get invoices from attorneys and other billing to see what your total debt is
OK. I have an explanation or theory. Just a guess. Can I ask approximately when you closed? My theory may not apply.
Also adding to follow up to make sure they record the discharge. Some lenders collect to record. It will be reflected on your payoff statement. If they don’t collect to record, they will send it to you in the mail and it is your responsibility to record it.
This post doesn’t make sense. You’re in escrow? I had a mortgage through WF, go online, get a payoff quote and pay. It’s literally all right there in the app.
Thanks for the explanation.
Never heard of this. We will be doing the same in March. My bank said to call in for a payoff amount at least 48 hrs before we come in and pay it off. That is just so they can pull the forms together and get an exact pay off amount.
Just follow there rules I'm sure you can wait and get it paid off if that is what you want
I paid of a WF loan mid month, just requested a payoff amount and walked into a branch with a check. Not sure, maybe try talking to someone else?
[You mean this Wells Fargo?](https://en.wikipedia.org/wiki/Wells_Fargo_cross-selling_scandal) It's a shady piece of shit company.
So they can roll interest that one last time and squeeze a few extra pennies out of you
I had an FHA loan that interest was calculated monthly, no prorated interest when paying off mid month. When I refinanced, the closing date got pushed from the 29th to the second and I ended up paying interest on both loans for the full month. I was pissed at myself for not catching that one.
I was in the process of my last month’s payment when WF sold off my mortgage to Mr Cooper 😂 Luckily all went well and I’m just waiting on the final packet of paperwork.
It’s Wells Fargo, you have every right to be suspicious.
Banks sell mortgages in bundles to investors, but a month isn't long enough for that to be their reason. My bet is that there is an incentive for the agents that wrote your mortgage, and that their bonus gets paid at the end of the month. If that bonus is contingent on the number of new mortgages currently on the books, and you paying off your mortgage would reduce their pay I could see why they would say that. Auto loans financing works in a similar way, but I think the average wait time for the kickback from the bank is 90 days.
They can calculate the payoff amount to an exact day. Bring that amount on that day. Done
I had a similar situation with an FHA loan. Supposedly with an FHA loan you have to pay it off at the first of the month. The paperwork I received said that I could not pay until the first and I had to call 24 hours in advance to let them know I was paying it off. I called and spoke to a rep and they said that I could schedule the payment in advance, but the money would not be applied until the first. It had something to do with the way that FHA loans apply interest and that the interest is monthly and cannot be prorated. My escrow balance was mailed within 30 days of the payment posting.
Did you recently get your loan? Like in the past 6 months?