Forgotten Your Password?

Need to Register?

Question Icon

when is the best day of the month to close a loan?

by ronskii330581 from Littleton, Colorado. Apr 6th 2015 Reply


Kay Cleland (kay@kcmortgagecolorado.com)
#31 ranked lender in Colorado - 225 contributions

If you are purchasing a home and are not paying off another, then you might want to close your new loan towards the end of the month to reduce the amount of your per diem interest. If you are doing a refinance it really doesn't matter as you are going to either pay interest on the old loan thru the payoff or the new loan with per diem interest. I would be happy to assist you. I am a local licensed mortgage broker here in Colorado. Kay 720-670-0124 or kay@kcmortgagecolorado.com

Apr 6th 2015
1
0
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

It really depends whether you want to need less cash at closing or a longer time for before your new payment. Virtually all mortgages are due on the 1st of the month and late if not paid by the 15th. Usually the first payment is not until the first of the 2nd month after closng. So, closing anytime in April means your first mortgage payment is not due until June 1 (and late after the 15th). However, you normally will pay interest on the loan through the end of the month you close during (April) which is added to the funds needed at closing. Less days remaining in the month mean more prepaid interest, but you are closer to the first mortgage payment being due.

Apr 7th 2015
1
0
Subscribe to our news feed.