Just signed my re-fin loan doc, and caught the following in “Notice To Closing Agent & Borrower – Prepaid Interest Collected At Funding”
“California law provides that a Borrower shall not be required to pay interest on home loan for a period in excess of one day prior to disbursing of escrow fund…”
“If disbursement of loan proceeds occurs on a Monday…, there will be an additional two-day per diem interest charge..”
“It may be possible to avoid this additional per diem interest charge by disbursing the loan proceeds on a day immediately following a business day”.
Your initials would be required to indicate that you do not request or approve any request made on your behalf that escrow disbursement occurs on a Monday or a day immediately following a holiday.
You should be able to find this notice in your copy of loan docs. Wish our loan expert would share his insight with us…
