Why am I charged a partial month of interest when my mortgage closes?2018-04-25T20:05:18+00:00

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At the time your mortgage closes, the lender/bank collects interest from the date your mortgage closed until the end of the first month. (Example: you closed on the 16th of the month) This is because the initial mortgage payment will be due the first day of the month the second month after the mortgage closes. Because mortgage interest is charged in arrears (for the prior month), your first mortgage payment is for interest for the previous month.