"Quick Answer:- Closing near the end of the month is best because it minimizes prepaid interest for buyers and slightly reduces prorated expenses for sellers.- Closing early in the month provides buyers more time before the first payment and offers sellers flexibility for moving or a subsequent purchase. - For many buyers and sellers, an end-of-month closing strikes the best balance of cost savings and convenience."
"Whether you close early or late in the month can have a meaningful impact on upfront costs, payment timing, and scheduling considerations for both buyers and sellers. Closing at the end of the month For buyers: Owe prepaid interest for just a few days Bring less cash to closing First full mortgage payment is typically due on May 1 For sellers: May owe fewer prorated expenses back to the buyer Can sometimes walk away with slightly higher net proceeds"
Closing near the end of the month lowers buyers' prepaid interest and reduces the cash needed at closing while often decreasing sellers' prorated expenses. Buyers who close at month-end typically owe only a few days of interest and face a first full mortgage payment on the first of the following month. Closing at the beginning of the month increases prepaid interest and upfront costs for buyers and may require sellers to credit more prorated expenses. Early-month closings can offer scheduling flexibility and extra time before monthly payments begin. For many transactions, an end-of-month closing balances cost savings and convenience.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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