What are the advantages to closing on a house at the end of the month?

Question

What are the advantages to closing on a house at the end of the month?

Answer 1

Depends on how you look at it.

Most people see closing at the end of the month means you pay less interest but your first payment is due sooner.  

If you close earlier in the month, you pre-pay all that interest, but don't have a payment for a while.

I personally prefer closing at the end of the month and making that first payment sooner rather than later.

Answer 2

Lower prepaid interest on the new loan through the end of the month. A little less cash you have to bring in to close. Otherwise, unless the property is a rental and you are inheriting tenants, you can get some rents in right away - not much.

Answer 3

I haven't seen that it makes a whole lot of difference. Generally things are pro-rated (like taxes) so regardless of when it is, you pay one way or another.

Answer 4

The advantage for most people is less money needed for closing costs.  Your closing costs will be less because on your settlement day, interest will  be collected in advance from that day to the end of the month.  The closer you are to the end of the month, the less interest you'll have to pay.

Answer 5

Everyone does this because they are paying rent thru the end of the month and don't want to pay rent and mortgage , too.  That's why the title companies are swamped on the last day of the month.

Answer 6

none really

people think there is

you pay interest for every day you own the house, to the bank, and at closing to the end of current month, so it doesn't really matter, but it puts your first payment off for another month usually

convenient dates for moving