time to close on a house...

[rh71]

Why is it better to close on a house at the end of a month? The mortgage bank said people usually do this... do they mean 15-30th of a month of generally the last week ?

Reasoning?

 

[Ameesh]

peoples morgatges are usually due at the end or beggining of the month.

 

[rh71]

I'm the buyer. If we close at the beginning of the month (1-15 days), then I'd be responsible for that month's mortgage? If we close at the end, then I wouldn't be responsible at all?

Strange that sellers would go for this... do we, as buyers, have that much leverage ?!

 

[richardycc]

because you have to pay for the interest during that month, if you close on the 5th, you have to pay 25days of interest at closing. Close on the 15, pay 15days of interest on the whole mortage, get the idea? I thought I was smart to close on Feb 28, but the fuker, I mean banker still made me pay for 3 (28,29,30) days of interest eventhou there is only 28days in that month. Luckily, the interest is tax-deductible.

rich

 

[rh71]

Originally posted by: richardycc
because you have to pay for the interest during that month, if you close on the 5th, you have to pay 25days of interest at closing. Close on the 15, pay 15days of interest on the whole mortage, get the idea? I thought I was smart to close on Feb 28, but the fuker, I mean banker still made me pay for 3 (28,29,30) days of interest eventhou there is only 28days in that month. Luckily, the interest is tax-deductible.

rich

I see... so the way I see it, there's no financial reason the sellers would keep us from choosing our date, except if it's inconvenient for them in terms of their schedule...

 

[richardycc]

The sooner the sellers close on the house, the less the pay off amount would be. so yes, of cause the sellers want you to close ASAP.
The 3 days interest on my loan was about $45.

rich