Sticker shock comes in many forms, closing on your house is no exception. Heres one way you can save some money.
WiseBread shares that by closing at the end of the month you could save hundreds of dollars.
Here’s an example: If you close on November 5 and your first mortgage payment is due after January 1, your first payment will, of course, include the interest that accrued in December. But it will also include the interest accrued in November. If you close November 5, that’s 26 days of interest.
But if you close on November 27, you will only pay three days of interest for that month. If your interest comes out to $25 a day, closing on November 5 will cost you $650 in November interest on your first payment. If you close on November 27, it will cost you just $75.
When you go to schedule your closing this might just be something to consider.
4 Mortgage Secrets Only Your Broker Knows– Wisebread