Why is my new note larger than the principal balance the last mortgage invoice?
There are several reasons why your refinanced loan has a slightly larger balance than your old note. When you refinance a note typically closing costs are rolled into the new note and this will explain the majority of the increase. However, outside of closing costs the following issues will increase the size of the new note; odd days interest (accrued interest on the old note), negative escrows, prepayment penalties, forbearance payments, payoff charges, release of lien fees (others may apply). When starting a refinance application be sure to ask your HomeStart loan officer what charges on your old loan will affect your new loan balance. Ask to see your official payoff.
