Have you ever asked "What is Pre-Paid Interest?"

Now... as you look at the chart; you will see house payment due July 1st: This means when you make that payment then you are paying the interest for June in that payment. The lender will collect upfront at closing the 16 days of interest in May because that was no included in your house payment... meaning you are paying 16 days of pre-paid interest.

Now remember this will vary depending on what day of the month you close. If you close toward the end of the month you will pay less pre-paid interest and more if you close at the beginning of the month.

I hope this helps