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    Closing cost

    I got my HUD-1 today.

    First, it did not reflect my balance as of 8/1. The principal was as of 7/31.

    Second, there is an interest cost of up to 9/1, for $1,342. How is this computed?

    Is it advisable to ask them to re-compute based on 8/1 principal balance, and hence, will drop also the interest cost mentioned above? It's only middle of August and there's a lot of time to work it since they've computed everything up to 9/1 anyway.

    Thoughts? Thanks.
    Kill the debt, before it kills you!

    #2
    The interest is computed based on your first month's interest (7/30-9/1), and your first payment will start after 9/1, starting at 10/1 probably(interest plus principle). I think you can op to make a full payment starting 8/1 and only need to pay for interest for 7/30.

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      #3
      It's just an estimate. The exact numbers will get recalculated when your loan gets funded, and if you paid more than you owed at closing, you will get a refund from the escrow company via check a week or so later. This is very common.

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        #4
        Originally posted by Randomsaver View Post
        I got my HUD-1 today.

        First, it did not reflect my balance as of 8/1. The principal was as of 7/31.

        Second, there is an interest cost of up to 9/1, for $1,342. How is this computed?

        Is it advisable to ask them to re-compute based on 8/1 principal balance, and hence, will drop also the interest cost mentioned above? It's only middle of August and there's a lot of time to work it since they've computed everything up to 9/1 anyway.

        Thoughts? Thanks.

        The interest is calculated on a per-day basis. So the difference between 7/31 and 8/01 is one day's interest. In your case, it seems that works out to $44 - $45. The overall total amount of interest that you'll end up with will depend on what actual date the transaction closes.

        Me being me, ( ), the $45 would be worth a phone call to see if I am right.

        Good luck.
        Retired To Win
        I blog weekly on frugal living, personal finance & earlier retirement at:
        retiredtowin.com
        making the most of my time and my money

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