This form is referring to the daily interest that will begin being charged on the NEW loan once it is actually funded. If they check the second box, they are agreeing to potential additional interest charges if the loan funds on a friday but can't actually record until a monday. Most of my customers check the first box due to that fact. Note: ask the lender/loan broker for a printout explaining this form to their customers and that will avoid alot of questions and delays at the signing.
Also, this form has absolutely nothing to do with the existing loan that is being paid off. |
