best time of month to close? - Posted by plevine

Posted by The Baze on April 25, 2001 at 19:28:03:

Actually, real property falls into the mid month convention of depreciation. So you get half a month of depreciation during the month you buy the property and a half month in the month you sell it. So based on that alone, you would purchase in the latter part of the month and sell in the early part of the month.

Tom Bazley

best time of month to close? - Posted by plevine

Posted by plevine on April 25, 2001 at 09:27:10:

My mortgage lender said that there is a best time of month to close on a property that will allow me to get a month for free. It is supposed to somehow work out that I won’t have to make a payment for a month. Anyone know when that is? Beginning, middle, or end of the month?

My three … - Posted by SusanL.–FL

Posted by SusanL.–FL on April 25, 2001 at 14:39:04:

Wash. Mut. loans are all due on the 15th of the month–even though I KNOW I closed on the 8th of the month on one of them.

Re: best time of month to close? - Posted by RussWhitneyConsultant0914

Posted by RussWhitneyConsultant0914 on April 25, 2001 at 13:46:27:


For rental property with tenants in place, the best time to close is the third day of the month. All prepaid rent and security deposits accrue to buyer at closing and the first mortgage payment is not due for one month.

Many lenders I’ve dealt with would allow you to set the monthly payment date, 5th, 10th, 15th etc. As the mortgage is paid in arrears your first monthly payment could be as much as one month out from any date of closing.

Hope this helps. Good Luck.

Russ Whitney Real Estate Consulting Dept.
Whitney Education Group, Inc.

Re: If we are talking about selling… - Posted by Lori Samson

Posted by Lori Samson on April 25, 2001 at 11:20:26:

… heck I don’t care when! I just want it to close! I use to try to plan it but heck you make everyone crazy pushing too hard or you make everyone mad delaying too long. I just let it close and thank god it did indeed close. That’s alway a miracle in my book!

Lori :slight_smile:

depreciation - Posted by Judith

Posted by Judith on April 25, 2001 at 11:15:44:

Last day of month is best, for reasons already mentioned by others. One reason which has not been mentioned is that the IRS will give you a full month’s depreciation (for rentals) even if you close on the very last day of the month.

Re: best time of month to close? - Posted by Rob FL

Posted by Rob FL on April 25, 2001 at 10:43:38:

If you close on the first day of the month (say May 1), then you get to skip a payment. The first mortgage payment would be due on July 1. Then only problem is you have to pay all the prepaid interest (that would have been your June payment) as upfront closing costs. Your closing costs are higher. The best day in my opinion is the last day of the month because it gives you 1 month before your payment is due and there is only 1 day’s prepaid interest.

Re: best time of month to close? - Posted by Terry Heilman

Posted by Terry Heilman on April 25, 2001 at 10:33:34:

It is best to close at the end of the month unless you have a rented property with the rent due on the 1st. Then it is better to close at the beginning of the month because of the rent credits typically are higher than the interest payment.

Re: best time of month to close? - Posted by TomC (MD)

Posted by TomC (MD) on April 25, 2001 at 09:58:14:

In a traditionally-financed mortgage, by closing on the last day of the month you have lower closing costs, and then your first payment is due 30 days later.

Your are not getting a month for “free”, however.