Comments on: Closing at the end of the month http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-196874 Rhonda Porter Sun, 21 Oct 2007 02:24:37 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-196874 I'm glad raman commented...I think I must have been on vacation when you wrote this informative post, Ardell. If someone closes on the 10th of the month or sooner, they can also close as an "interest credit". There will be no additional prorated interest, however instead of "skipping a month" on the mortgage payment, it will be due on the following month. For example, if someone is closing on Oct. 10, the could either have an interest credit (not pay prorated interest) and have their first payment due on Nov. 1 OR they can pay the 21 days of prorated interest and have their first payment due Dec. 1. With interest being prorated for both buyers and sellers, it really doesn't matter if it closes at month end or not. The interest credit/debit is still there. It's more psychological if anything (closing at month end). Where a difference could be is if the buyer or seller are trading higher or lower interest rates on their existing mortgages/financed property. Then there may be a cost difference involved. I’m glad raman commented…I think I must have been on vacation when you wrote this informative post, Ardell.

If someone closes on the 10th of the month or sooner, they can also close as an “interest credit”. There will be no additional prorated interest, however instead of “skipping a month” on the mortgage payment, it will be due on the following month.

For example, if someone is closing on Oct. 10, the could either have an interest credit (not pay prorated interest) and have their first payment due on Nov. 1 OR they can pay the 21 days of prorated interest and have their first payment due Dec. 1.

With interest being prorated for both buyers and sellers, it really doesn’t matter if it closes at month end or not. The interest credit/debit is still there. It’s more psychological if anything (closing at month end).

Where a difference could be is if the buyer or seller are trading higher or lower interest rates on their existing mortgages/financed property. Then there may be a cost difference involved.

]]> By: ARDELL http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-196860 ARDELL Sun, 21 Oct 2007 02:00:54 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-196860 You pay one day's interest for every day you have the lender's money. So the real cost is the same regardless. If you don't have to worry about cash at closing, it doesn't matter. If your cash is tight, then close near month end. It's only the up front amount due at closing that changes. Feel free to email me if you need more detailed explanation. You pay one day’s interest for every day you have the lender’s money. So the real cost is the same regardless. If you don’t have to worry about cash at closing, it doesn’t matter. If your cash is tight, then close near month end. It’s only the up front amount due at closing that changes.

Feel free to email me if you need more detailed explanation.

]]> By: raman http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-196837 raman Sun, 21 Oct 2007 00:52:19 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-196837 hi i don't understand this hi i don’t understand this

]]> By: Tim http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168382 Tim Wed, 08 Aug 2007 22:40:44 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168382 LOL, yes, maybe call it a gas surcharge....everyone delivering materials to our house for home improvement does for crying out loud. Getting ridiculous. We should place it on the HUD just for fun to see the looks on peoples faces. :) LOL, yes, maybe call it a gas surcharge….everyone delivering materials to our house for home improvement does for crying out loud. Getting ridiculous. We should place it on the HUD just for fun to see the looks on peoples faces.

:)

]]> By: ARDELL http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168366 ARDELL Wed, 08 Aug 2007 20:46:53 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168366 Maybe a surcharge for month end then :) Maybe a surcharge for month end then :)

]]> By: Tim http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168347 Tim Wed, 08 Aug 2007 19:58:12 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168347 Eric, you are correct. Ardell, you tickle my funny bone! :) Off topic: Nothing humors ANY escrow office or title company more than agents & loan officers who ask escrow to discount their fees for whatever reason. Or, ask escrow to stay late for loan documents than never arrive (or have been "coming" for the last two or three days) and if they do arrive, it is usually well after 3-4pm--then track down their very own clients at 8pm at night to sign them, only for the buyers to complain that the escrow fee is soooooo much higher than anyone else (laughable) and then to have the very same client ask why their initial interest rate on the 1st is 7.125% and over 11% on the second. Makes for a humorous day at the office. Eric, you are correct.

Ardell, you tickle my funny bone! :)

Off topic: Nothing humors ANY escrow office or title company more than agents & loan officers who ask escrow to discount their fees for whatever reason. Or, ask escrow to stay late for loan documents than never arrive (or have been “coming” for the last two or three days) and if they do arrive, it is usually well after 3-4pm–then track down their very own clients at 8pm at night to sign them, only for the buyers to complain that the escrow fee is soooooo much higher than anyone else (laughable) and then to have the very same client ask why their initial interest rate on the 1st is 7.125% and over 11% on the second.

Makes for a humorous day at the office.

]]> By: Eric Ransom http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168338 Eric Ransom Wed, 08 Aug 2007 19:23:28 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168338 Great breakdown for our Buyers to understand what goes on. Yes, it saves on cash, but most do not realize they will pay either way so if they want to close....close. Great breakdown for our Buyers to understand what goes on. Yes, it saves on cash, but most do not realize they will pay either way so if they want to close….close.

]]> By: ARDELL http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168297 ARDELL Wed, 08 Aug 2007 15:51:20 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168297 On the flip side, the cons of closing at month end is that it is generally the busiest time for all services. Consequently you might get short shrifted as people are "too busy". Rental trucks may be harder to come by. Movers may cost more as they are squeezing in all the movers at month end. You might have a little more bargaining power if you are closing between the 10th and 20th. Maybe an escrow company can offer a small discount for people who close at less busy times, to help alleviate the end of month crunch. On the flip side, the cons of closing at month end is that it is generally the busiest time for all services. Consequently you might get short shrifted as people are “too busy”. Rental trucks may be harder to come by. Movers may cost more as they are squeezing in all the movers at month end.

You might have a little more bargaining power if you are closing between the 10th and 20th.

Maybe an escrow company can offer a small discount for people who close at less busy times, to help alleviate the end of month crunch.

]]> By: Jim Frey http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168296 Jim Frey Wed, 08 Aug 2007 15:46:38 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168296 Thanx Ardell....being a buyers agent, it is also very beneficial to close @ the end of the month.....try to sign by the 25th (ish) & receive keys last day of month.....YAHOO! Thanx Ardell….being a buyers agent, it is also very beneficial to close @ the end of the month…..try to sign by the 25th (ish) & receive keys last day of month…..YAHOO!

]]> By: ARDELL http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168171 ARDELL Wed, 08 Aug 2007 05:15:22 +0000 http://raincityguide.com/2007/08/07/closing-at-the-end-of-the-month/#comment-168171 I did my stats for July, but I saved the pie charts as pdf and couldn't upload them. Have to redo them in jegs. I'll try to have them up tomorrow. I did my stats for July, but I saved the pie charts as pdf and couldn’t upload them. Have to redo them in jegs. I’ll try to have them up tomorrow.

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