Is it better to close in the beginning or end of the month?

When purchasing a new house, it’s best to close as late in the month as possible if low closing costs are your goal. You don’t make your first house payment at closing, but the lender wants you to pay interest for each day you own the home. If you close on the 1st, you have to pay interest for every day in that month.

Does closing date matter?

Mortgage Closing Date: Does it Matter? On a purchase transaction, there is no financial advantage in closing on any day of the month, as compared to any other day. On a refinance, however, it is a good idea not to close on a Friday.

Why is it cheaper to close on a house at the end of the month?

Your closing costs will be lower That’s because mortgage interest accrues from the date of closing through the last day of the month. So, with an end-of-month closing, there’ll only be a small window for interest to accrue, and less for you to pay.

Is it better to close on a home in December or January?

If cash is in short supply, closing as late in the month as you can can make economic sense. However, the later you close, the sooner your first full mortgage payment will be due. Here’s another example of how it works: Say you close on Jan. 28.

How long after you close on a house is your first payment?

30 days
Your first mortgage payment will be due on the first of the month, one full month (30 days) after your closing date. Mortgage payments are paid in what are known as arrears, meaning that you will be making payments for the month prior rather than the current month.

Can I close early on a house?

A buyer and seller can agree to close sooner, and they can put this in the purchase contract, but the lender must be able to perform its role during that time frame. If not, it doesn’t matter what date is chosen, because the closing can’t occur if the lender isn’t ready.

How long after closing is first payment due?

Your first mortgage payment will be due on the first of the month, one full month (30 days) after your closing date. Mortgage payments are paid in what are known as arrears, meaning that you will be making payments for the month prior rather than the current month.

What is the best date to close on a house?

The best day to close a home purchase, or a mortgage refinance, is on the last business day of the month, unless it falls on a Monday. Then you should close on the preceding Friday so you don’t have to pay interest over a weekend.