Buying a home in Aventura Florida: Make sure to Close at the end of October

Congratulations! You have found the home you want to buy in times of October buyers’ market! Make sure to close by the end of the month, Why? Because it has to do with minimizing the pre-paid interest you will pay on your mortgage loan when closing. Your mortgage interest will start running from the day your Real Estate transaction closes since many loans are payable on the first day of the month.  This means that when you close, you are "pre-paying" the interest between the closing date and the interest pertained to the end of the month too. In other words, if you close on October 29th, you will be prepaying only one day of interest to cover up the rest of October's interest. The first payment will be due on December 1st, when you will be paying, in fact, the interest of November.  If you close by November 5th , you prepay 25 days of interest.  This means you have to carry in more cash to close your Real Estate transaction  than necessary by closing just some days earlier.  Ask your Real Estate Agent.