I have heard hundreds of times that people think they should settle at the end of the month to save money on the closing costs. They make it sound like you will save enormous amounts of money by closing at the end of the month. Everyone knows its true. I have clients whose friends tell them this, their neighbors and workmates also tell them. So it must be true, yes? It is not true. This is an old wives’ tale. What these people are talking about is the daily interest charge, also known as per diem interest.
The actual closing costs are no more expensive if you settle early in the month than if you settle late in the month. Read the rest of this entry »