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Does closing at end of year make a difference?

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bbb925
Regular Contributor

Does closing at end of year make a difference?

I got to thinking about taxes, HOI, and all the prepaid items we pay at closing and was curious about something. Will closing costs be cheaper on a new build considering I'm only paying two and a half months worth because I'm closing mid-October? On my last home I closed in June, but I believe I had to pay the 6 months of HOI and taxes at closing. I could be mistaken but that's what I think I recall. Since new builds haven't had their officially built property tax assessment it's usually much cheaper the year it's built in than in the following year. If I'm not explaining this correctly I apologize. Maybe someone understands what I mean? To reiterate after all this confusion, does closing at the end of the year lessen the closing costs in any way?
Thanks for any helpSmiley Happy
Message 1 of 3
2 REPLIES 2
DallasLoanGuy
Super Contributor

Re: Does closing at end of year make a difference?


@bbb925 wrote:
I got to thinking about taxes, HOI, and all the prepaid items we pay at closing and was curious about something. Will closing costs be cheaper on a new build considering I'm only paying two and a half months worth because I'm closing mid-October? On my last home I closed in June, but I believe I had to pay the 6 months of HOI and taxes at closing. I could be mistaken but that's what I think I recall. Since new builds haven't had their officially built property tax assessment it's usually much cheaper the year it's built in than in the following year. If I'm not explaining this correctly I apologize. Maybe someone understands what I mean? To reiterate after all this confusion, does closing at the end of the year lessen the closing costs in any way?
Thanks for any helpSmiley Happy

 you paid 6 months in taxes to build the escrow account.....

but the seller gave you a credit for their portion.

 

on a purchase, it doesnt matter when you close.

 

on a refi.... it is kind of like you are the seller. you fund the escrows and then the old mortgage company refunds all of your unused escrow funds in about a month

 

Retired Lender
Message 2 of 3
bbb925
Regular Contributor

Re: Does closing at end of year make a difference?

Got it! Thanks! Smiley Happy

 

Message 3 of 3
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