If you could save eliminate almost an entire monthly interest payment when buying your new home, would you want to know how? It is actually pretty easy and it just takes a little planning on your part. First, it is important to understand a simple concert that is usually referred to as odd days interest. This is a charge that you pay on your day of your real estate and loan closing. If you close on July 2nd, 2024, your title company or attorney who is handling your closing will likely require you to pay 29 days with of interest at closing. This means that on top of your down payment and your typical closing costs, you will have to bring extra money to cover the 29 days of interest.
The simple house hack you can do to reduce the amount of money you need on the day of closing is super easy once you understand how odd days interest works. The alternative to closing on the 2nd of the month is to close towards the very end of the month instead. Let's say you negotiate your closing date to be on July 29th, 2024. In this case, you will only be paying an additional 3 days of interest which is a substantial savings compared to 29th days if you were to close on the 2nd of the month. You may be wondering if it is really that easy and the answer is "Yes". The reason most people don't do this is because they don't know about the odd days interest charge until they get their closing disclosure. This house hack can be especially beneficial for buyers that are tight on cash and who are looking for ways to reduce how much money they need on the day of closing.
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Thanks for watching!
Sam Miller of REMAX Stars Realty 740-397-7800 SamMillerSells.com
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