If I close on 27th May, I will pay interest per diem for the remaining days of May.
But my first payment will not be due until July 1st. Why is that?
With rent, you pay in advance for the month ahead, in the begining of the month. Is it true that with mortgage loans, my payment is applied to the previous month and not the month that is starting? So, my first payment on July 1st would actually be for the month of June?
If this is not true, I must be missing something. Maybe my first payment is somehow factored into the closing costs or down payment.
No, you are probably just stuck in a crack. They probably produce the bills for the following month a day or two before you close, and you will not be in their computer yet. More than likley they schedule all the bill to go out a single time, and do not have the ability to produce a bill at any other time of the month. I am suprised that they do not ask for the first payment at the closing table, consider yourself lucky.
Dude you will be paying off your loan for another 15 to 30 years. Whats a few bucks in intererst, the write off amount will exceed the interest paid. Congratulations on your new house (that you will call home). Good Luck.
Yeah you pay mortgage thru rear. I have been doing it for friggin 200 years and I still have some 3000 more years to go. I hope my rear can survive it.
I think your first month is included in your closing cost (I seem to remember that was what my real estate agent told me when I'd asked her this question).
I think probobly interest for June was probobly calculated into your closing costs.
Is this fixed rate loan? You can ask for detailed loan summary that identifies applied as principle and amount applied toward interest for the entire length of your loan.
If you obtain one of these statements…if you can swing it…along with your regular monthly payment…start sending in additional monies equal to the final principle amount each month in reverse order… this way you can shorten the term of your loan and save yourself sum bucks.
What I mean is… say the loan would be paid off in year 2035. Begin sending than amount calculated to the principle applied for that final payment…then the next to final payment..etc…
