Because buying a house is such a significant investment, it makes sense that homebuyers look for ways to decrease costs. Surprisingly, the time of month you schedule the title closing impacts the cost. Below is a guide to how the timeline of closing affects mortgage payments and how timing could save you money.

Closing at the End of the Month

Most real estate and financial gurus claim that having the title closing at the end of the month is the best course of action. This often results in reduced interest cost. Having the closing around the middle of the month results in a prepayment of interest that totals approximately 15 days or so. Conversely, closing at the month’s end results in a mere one or two days of prepaid interest. It also puts off your first mortgage payment by a month, since you pay for the preceding month when submitting payment.

However, if delays occur the closing will be pushed to the following month regardless, which loses these savings. Delays can become even worse if you’re participating in a short sale, which is notorious for a languid timeline. Also, remember that you will ultimately pay the same amount; you’ll just save on out-of-pocket costs for the first month of your mortgage.

Closing at the Beginning of the Month

Having the title closing at the beginning of the month spares you the headache of delays. It could also help you save up to two months of mortgage payments, but it causes you to pay more in interest. If you are at the mercy of the seller in terms of scheduling, you’ll need to compromise to find a date that works for both parties, which could mean closing at the beginning or even the middle of the month.

When you have questions about title closings in Burnsville, MN, First Financial Title Agency of Minnesota Inc. will provide answers. As a leading local title and escrow company, they can make sense of the complex process of buying or selling a home. They can also help you perform a title search, and they will provide title insurance, which ensures your property remains protected against a variety of threats. Take advantage of more than three decades of experience by calling (952) 831-5010 today. You can also learn more about closing services by visiting their website.