Home Buying Tips: Close at the End of the Month

Buying a home could easily be the most expensive purchase you make in your life. And even after you’ve obtained the loan and budgeted for all possible costs, a lot of little expenses seem to appear out of nowhere. It would be useful to have a bit of cash on hand for such surprises. If you want to preserve your short-term cash flow, the best time to close would be on the last day of the month.

When you buy a home, you have to pay accrued mortgage interest from the time that you close until the end of the month. For example, if your mortgage runs $250,000 and your rate is 3.75 percent, you’d pay about $376 per month, or $12.53 per day, in interest.

  • If you closed on the first day of the month, you’d owe $376 in interest because you’re paying interest for every day of the month.
  • If you closed on the last day, you’d owe $12.53 in interest because you’re paying only for the last day. You’d save $363.47.

In the long run, all the interest payments balance out to the same total by the loan’s end. So don’t let these savings be the sole reason you close on a particular day. However, the extra cash could come in handy for paying deposits to utility companies, paying off movers or cleaners, or stocking the pantry. You could even add that extra pieces of furniture to the entry that you’ve always wanted.

If you want more home buying tips, or need help in looking for a place to own, please contact us.

Home Buying Season Opener

home buyingSpring is the season for house hunting.  It always has been.   People have been stuck in their homes all winter, seeing too little sun and getting a bit claustrophobic.  It is the time of the year to get out and find a new abode.

Make sure that when you are looking for a new home this spring that you are ready for the season with the appropriate gear.  These items are essential for a successful hunt, and you want to make sure you prepare before going out.  Here are some general home buying tips for those in the hunt.

Research the amount you can afford.  Remember to take into consideration the cost of insurance and taxes, and get yourself pre-approved for a loan.

Bring along a house hunting checklist.  Make a checklist of the things that are important to you and bring it along.  If you are looking at many homes, this will come in handy as you review your options.

Hire a good realtor.  You need someone who knows the market, and can steer you away from things that aren’t right for you.  This will save you time and aggravation. Your realtor is your best source for information.

Wear comfortable shoes.  This is a good idea for all aspects of life.

Be patient, the house that is right for you might not be the first one you see.  Don’t be overanxious and jump at the first property.  Talk to your realtor along the way, and let them know what you like or did not like about a property and what items are most important to you.

Don’t forget to check out are Home Buyers page for more helpful information and guides.

If your looking for a great Realtor I would love to help Contact Me anytime.

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