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Month-end can mean delays. That month-end traffic jam also means a greater likelihood of delays, which can push the closing to the beginning of the next month, when buyers will have to come up.
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It is up to you whether you want to pay those costs at the beginning or at the end. If you are buying a home in a neighborhood requiring monthly hoa fees, paying at the end of the month may also reduce the initial upfront cost as they are usually prorated. In this post, we’ll talk about the pros and cons of closing at the end of the month.
Closing at the beginning or end of the month can have financial advantages and disadvantages. First, you must understand that mortgage interest on your mortgage begins accruing on the date that you close on your property.
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– SmartAsset – Mortgage Calculator Rent vs Buy Closing Costs Calculator.. Closing is the final step in the home-buying process and once you’ve. scheduling the closing at the end of the month might make sense if you have to give. But if you close near the beginning of the month, you’ll have to pay more in interest.
On a purchase transaction, there is no financial advantage in closing on any day of the month, but on a refinance, it is a good idea not to close on a Friday, and if you are payiong off an FHA, close at the end of the month because you will pay interest on the FHA for the entire month, regardless of when you close.