Better To Close Last Day Of Month Or 1st Day Of Next?

Is it better to close on a RE transaction the last day of a current month or the 1st day of the following month?

Or does it matter......?

Comments(2)

  • InActive_Account18th June, 2004

    many lenders have their payments due on the 1st. if you settle at month end, you have a very small amount of per diem interest. if you settle at the beginning of the month, your per diem interest is a lot higher. so, settling month end requires less up front money from the borrower

  • tinman175518th June, 2004

    That would depend on when you want to make your first payment.
    If you close today on a purchase 06/18/2004. You would pay the bank a per diem from 06/18/2004 to 07/01/2004. Your first payment would be 08/01/2004. If you closed on 06/30/2004, your per diem would be 06/30/2004 to 07/01/2004, your first payment would be on 08/01/2004.
    Now if you closed on 07/03/2004 you could make your first payment 08/01/2004 or 09/01/2004. You would have the option of getting an interest credit or paying the per diem.

    The choice is yours.!!!!!!

    Lori
    [addsig]

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