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MrsNaunie
Kai helps my father dump out.
Member since 9/06 1181 total posts
Name:
Lauren
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Closing date question
I have been told that it is better to close at the end of a month, that there is some charge you assess per day to the end of the month if you close earlier.
Does anyone know what that fee is? Or how much/ day it is?
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Posted 3/29/07 5:04 PM  |
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Jacksmommy
My love muffin!
Member since 1/07 5819 total posts
Name:
Liz
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Re: Closing date question
I just got my estimated closing costs and they estimated it at 27 days (I am closing on the 4th) at 49.97 a day. I don't know if this is the same for every house.
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| Posted 3/29/07 5:23 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Closing date question
What for 27 days? What fee is that?
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| Posted 3/29/07 5:25 PM |
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jenheartsrob
LIF Adult
Member since 5/06 1861 total posts
Name:
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Re: Closing date question
My DH says it's better to close in beginning of the month because you pay prepaid interest for the month up until the day you close at a rate (for us it's $45/day)..so for example, if you close on the 31st you pay 45x31... if you close on the 2nd, you pay 45x2....less money to lay out for early in the month closings
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| Posted 3/29/07 7:19 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Closing date question
Posted by jenheartsrob
My DH says it's better to close in beginning of the month because you pay prepaid interest for the month up until the day you close at a rate (for us it's $45/day)..so for example, if you close on the 31st you pay 45x31... if you close on the 2nd, you pay 45x2....less money to lay out for early in the month closings
That is really good to know - and something I will definitely be keeping in the back of my mind as we go to contract!
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| Posted 3/29/07 7:42 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Closing date question
Posted by Kara
Posted by jenheartsrob
My DH says it's better to close in beginning of the month because you pay prepaid interest for the month up until the day you close at a rate (for us it's $45/day)..so for example, if you close on the 31st you pay 45x31... if you close on the 2nd, you pay 45x2....less money to lay out for early in the month closings
That is really good to know - and something I will definitely be keeping in the back of my mind as we go to contract!
Wait a minute - are you sure this is correct? I just looked it up and it said the opposite. According to what I read, prepaid interest is equal to the amount of interest per day from the date you close to the end of the month. This means if you close on May 1st, you have to pay 31 days of interest, but if you close on May 29th, you pay 3 days worth.
Here's a link to an article about this: Prepaid Interest
Message edited 3/29/2007 8:02:04 PM.
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| Posted 3/29/07 8:00 PM |
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Jacksmommy
My love muffin!
Member since 1/07 5819 total posts
Name:
Liz
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Re: Closing date question
Thats what I thought and thats what I am paying!
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| Posted 3/29/07 8:02 PM |
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: Closing date question
All the bankers and lawyer I spoke to said it's always better to close after the half way mark through a month, so you're not paying a full months worth of interest on the house. We closed on the 29th of Jan and paid only 3 days of interest on our mortgage, rather than 31 had we closed at the start of Jan.
we only paid $300 out of pocket at closing for the oil delivery that occurred a few days before we moved in since we moved in during the coldest week on record.
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| Posted 3/29/07 8:02 PM |
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jenheartsrob
LIF Adult
Member since 5/06 1861 total posts
Name:
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Re: Closing date question
I'm looking at our mortgage docs and closing info and it says that we are closing on April 30 and we are paying 30x45..... ??? hmmm
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| Posted 3/29/07 8:04 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Closing date question
The 27 is the amount of days left in the month you are closing. Depending on what day you close will depend on what that number is. Then you will pay a per diem interest--how much the loan costs you per day in interest. So if you close on the 3rd of April you pay 27 days worth of interest and your payment is due June 1. If you close on April 30th you pay 1 days worth of interest and your payment is still due June 1. We closed on the 5th of April and although we paid 25 days of interest it was good for us because we were able to use the rest of April to work on the house and be out of our apartment by May 1 and still have a whole month without mortgage payments.
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| Posted 3/29/07 8:41 PM |
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MrsPowers
So blessed!
Member since 11/06 10348 total posts
Name:
Ivelysse
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Re: Closing date question
We are closing today and only have to pay for 2 days (30th & 31st).
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| Posted 3/30/07 8:10 AM |
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lorich
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Member since 6/05 9987 total posts
Name:
Grammie says "Lora Gina"
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Re: Closing date question
Posted by csorisi
We closed on the 5th of April and although we paid 25 days of interest it was good for us because we were able to use the rest of April to work on the house and be out of our apartment by May 1 and still have a whole month without mortgage payments.
This is very similar to our situation. It's nice knowing we don't have a mtg payment due until May 1st.
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| Posted 3/30/07 8:11 AM |
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AllyandMike
LIF Infant
Member since 4/06 64 total posts
Name:
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Re: Closing date question
It is absolutely better to close towards the end of the month. This way you are paying interest on less days. If you close towards the beginning of the month (say April 2nd) you're going to be paying 28 days of interest, whereas if you close on April 29th, you're only paying 2 days interest.
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| Posted 3/30/07 8:14 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Closing date question
Posted by MrsPowers
We are closing today and only have to pay for 2 days (30th & 31st).
But then is your first mortgage payment due on April 1st?
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| Posted 3/30/07 8:25 AM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: Closing date question
we closed in the beginning of March and really it didn't effect things to much
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| Posted 3/30/07 8:59 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Closing date question
Posted by Kara
Posted by MrsPowers
We are closing today and only have to pay for 2 days (30th & 31st).
But then is your first mortgage payment due on April 1st?
no, it should be due may 1st!
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| Posted 3/30/07 9:03 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Closing date question
Posted by MrsFlatbread
Posted by Kara
Posted by MrsPowers
We are closing today and only have to pay for 2 days (30th & 31st).
But then is your first mortgage payment due on April 1st?
no, it should be due may 1st!
Oh, okay! Whew!
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| Posted 3/30/07 9:08 AM |
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ali120206
2 Boys
Member since 7/06 17789 total posts
Name:
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Re: Closing date question
Posted by AllyandMike
It is absolutely better to close towards the end of the month. This way you are paying interest on less days. If you close towards the beginning of the month (say April 2nd) you're going to be paying 28 days of interest, whereas if you close on April 29th, you're only paying 2 days interest.
It equals out though because even though you have lower closing costs, you have to pay your first mortgage payment sooner so, it's not necessarily a bad thing to close at the beginning of the month!
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| Posted 3/30/07 9:16 AM |
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: Closing date question
Posted by Kara
Posted by MrsPowers
We are closing today and only have to pay for 2 days (30th & 31st).
But then is your first mortgage payment due on April 1st?
We closed Jan 29 and our first morrtgage payment was due March 1.
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| Posted 3/30/07 9:19 AM |
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LAMGAJ28
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Member since 10/05 6039 total posts
Name:
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Re: Closing date question
Posted by PotofLuck06
Posted by Kara
Posted by MrsPowers
We are closing today and only have to pay for 2 days (30th & 31st).
But then is your first mortgage payment due on April 1st?
We closed Jan 29 and our first morrtgage payment was due March 1.
Unlike when you live in an apartment, you pay your rent ahead of time for the month. When you own a home, you actually pay it once the month is over....not sure I'm stating this correctly....hope it makes sense..so in the case above, she closed in January...payment is not due until March 1st because she will paying February which is the month she started living in her home.....I hope I'm making sense.....need to go and get some coffee.....
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| Posted 3/30/07 9:29 AM |
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