Is it beneficial to pick a closing date that is early, late, or in the month to lower cash requirements?
Is it beneficial to pick a closing date that is early, late, or in the month to lower cash requirements?
Because of how mortgageinterest accrues from the date you close until the end of the month, closing later in the month has an advantage. That is, the later in the month you close, the less interest you will have to pay out of pocket. That being said, the later in the month a house buyer closes, the sooner they must begin paying mortgage payments, which are due on the first of the month 30 days following the closing date. As a result, it is entirely dependent on your unique circumstances. Closing near the end of the month costs the least in prepaid interest but gives you less time until your first mortgage payment is due, whereas closing earlier in the monthly costs more in prepaid interest owing to the upfront, but gives you more time until your mortgage paymentsbegin.
