Kevin Martini called Episode 31 of the Martini Mortgage Podcast the Month End Myth. This special podcast was recorded because many people believe that closing at the end of the month matters hence, the month end myth! Why one believe the myth is not important. What matter is understanding that closing on a mortgage at the first of the month or closing on a mortgage in the middle of the month or closing on a mortgage on the last ay of the month you cost are all the same.
HOW DOES MORTGAGE INTEREST WORK?
Mortgage interest in ONLY paid when you have used the money. Mortgage interest is paid in arrears.
“When a mortgage payment is due on the 1st of the month, it is actually for the previous month interest…this is in contrast to renting” KEVIN MARTINI
Rent, generally, is paid on the 1st of the month and you are paying for the month in advance. In the mortgage world, you are paying your interest in arrears. All mortgage payments are due on the first of the month. Since there are many options of days when one can close on a real estate transaction, this could cause a wealth of mortgage due dates. To resolve this and to keep everything uniformed with a first of the month due date and to keep mortgage interest paid in arrears there I something called interim interest. Interim interest is paid at the closing table. It is my opinion, interim interest should not be considered a real closing cost.
In episode 31 of the Martini Mortgage podcast, Kevin Martini goes into more detail of interest interest. In addition, Kevin Martini shares the economics of closing on the first of the month and closing oat the end of the month.
The cost of closing a loan are exactly the same regardless when one closes.
Kevin Martini is not just the host of the Martini Mortgage Podcast he is also the Senior Mortgage Strategist and Branch Manager of the Martini Mortgage Group at Benchmark Mortgage.
If you or someone you know has questions about when to close or would like to talk about the unique strategy that Kevin Martini deploys with the help of his trusted real estate Partners that requires less money at the closing table but provides no need for first payment until a little over 60-days, then call (919) 238-4934 and talk to Kevin Martini or one of his Mortgage Strategists.
If you are currently in a starter or trade-up house that no longer fits your needs and you are considering to move up or looking to step into a luxury home, now is the time to list your house for sale and make your dreams come true! If you want or need help, Kevin Martini can and will.
If the right thing for you and your family is to purchase a home, buying sooner rather than later could lead to substantial savings. Call the Martini Mortgage Group at Benchmark Mortgage so we can get together to evaluate your opportunities.
Kevin Martini | NMLS ID 143962 | Branch Manager | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 5650 Six Forks Road, Suite 101 Raleigh, NC 27609 | (919) 238-4934 | www.KevinMartini.com | Kevin.Martini@Benchmark.us | Equal Housing Opportunity