Interim Interest

DH and I are meeting with our mortgage person next week to go over the good faith estimate she gave us. I'm the kind of person that needs to see everything laid out in front of me and explained to a T. She had said that the only thing that wasn't in the estimate was the interim interest. I don't know if I understood this right, but this is what I'm thinking...we locked in at 6.5%. I am asssuming that the interim interest would be paying the interest that has accumulated between lock-in and the actual closing. Is this right? I know we will be meeting with her soon, but I wanted to hear what you guys had to say. Also, would this be very costly?? I am clueless here. Our closing is going to be around May 30th.

If there is anything else you think of while reading this feel free to add it. I could use any suggestions, advice, etc. Thanks!!

Re: Interim Interest

My understanding is that interim interest is the interest you pay from the time you close until the next mortgage payment is due. Usually a pro-rated amount depending on the day of the month you close.

Re: Interim Interest

Thanks!

Re: Interim Interest

or it could be the interest you pay depending on the day you close from the beginning of the month..i forget..

Re: Interim Interest

since interest is paid in arrears, the interim interest is the interest from the date of close through the end of that month. If you close on the 28th of April, you will pay interim (or stub) interest from the 28th till the 30th = 3 days of interest, etc.