First mortgage payment and per diem interest question?

Question

we are closing on a house on August 21st and in the good faith estimate there is an amount equal to 15 days of interest included in the closing costs. Does this mean our first payment is 15 days later? I assumed that our first payment would be October 1st?

Answer 1

those per diem charges are from the day your closing occur to the end of the month. Lender can charge you full mortgage payment after 30 days, so your first payment will be on October first ( this payment is for September) .Lender charge you for every day he is borrowing you the money.

Answer 2

Your payment should be oct 1.  The 15 days of prepaid is the interest for the mortgage being paid off.  Most Good Faith's will show it like that as there is no way, especially on a purchase, to know when your going to close.  For example, if you were to close Aug 4, your prepaid interest would be 27 days.    With a closing date of August 21, you'll be paying 10-11 days of interest.  Make sure you check the hud at closing to be sure your not being charged more days

Answer 3

You should only have 11 days of interest & yes, your first payment will be Oct. 1.