Are you planning to buy a home this summer? If so, there’s a valuable financial perk you should know about. When you close on your home purchase, you get a surprising advantage: you won’t have to make your first mortgage payment right away.
For example, if you close on your new home in June, your first mortgage payment won’t be due until August. That’s right—two months without having to worry about a mortgage payment! This can be incredibly helpful as you plan your move and settle into your new home.
Why This Delay Happens
ou might wonder why there’s this delay. The reason is that mortgage interest is calculated from the date of loan disbursement to the end of that month. For instance, if your loan is disbursed on June 15th, interest will be charged from June 15th to June 30th and included in your closing costs. Therefore, your first mortgage payment, due in August, will cover the interest for the month of July.
Benefits of This Payment Gap
This payment gap offers several benefits:
Financial Breathing Room: You have extra time to manage your finances without the immediate burden of a mortgage payment. This can be particularly useful if you have unexpected expenses during your move.
Smooth Transition: It allows you to transition smoothly from your current living situation to your new home without the stress of overlapping payments. You can move out of your rental at your own pace and get settled in your new place comfortably.
Planning Ahead: Knowing this perk can help you better plan your move and allocate your resources effectively. Whether you need to purchase new furniture, take care of minor renovations, or simply enjoy your new space, having a couple of months without a mortgage payment can make a big difference.
Make the Most of Your Home Purchase
If you’re considering buying a home this summer, keep this financial perk in mind. It can make your home buying experience more enjoyable and less stressful.
At Sage and Cedar Real Estate, we’re here to help you navigate the home buying process and make informed decisions. Contact us here to learn more about how we can assist you in finding your dream home and making the most of this exciting time.