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question on interest paid during closing
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snowprincess
My happy babies
Member since 3/06 3428 total posts
Name:
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question on interest paid during closing
If you close on the first of the month - do you pay all the interest for the month or nothing
thanks -i am just confused by closing cost statment sheet
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Posted 11/30/06 6:33 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: question on interest paid during closing
If I remember correctly, you pay nothing. It is when you close at the end of the month that you pay interest or do I have that backwards 
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| Posted 11/30/06 7:43 PM |
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Tine73
Member since 3/06 22093 total posts
Name:
*********
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Re: question on interest paid during closing
We just met with a mortgage guy last night. If you close in the beginning of the month you have to pay all of the interest.
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| Posted 11/30/06 7:52 PM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: question on interest paid during closing
Posted by snowprincess
If you close on the first of the month - do you pay all the interest for the month or nothing
thanks -i am just confused by closing cost statment sheet
1. If you close on the first of the month you will pay no stub interest at closing since your first payment will be the first of the next month (i.e. you close 12/1/06, your first payment will be 1/1/07).
2. When you close on any other day of the month you pay stub interest at closing for the that day thru the end of the month and your first payment will be the first of the following month (i.e. if you close on 12/2/06 you will pay stub interest at closing from the 2nd thru the 31st and then your first mortgage payment will be due on 02/01/2007).
ETA: #1 above only happens when you close on the 1st of the month.
Message edited 11/30/2006 7:53:39 PM.
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| Posted 11/30/06 7:52 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: question on interest paid during closing
I look at it as a "pro-rated" month. If your payment is $2,000/month and you're closing with one week of the month left, you'll pay $500.
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| Posted 12/1/06 9:50 AM |
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