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
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.
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
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
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