@StartingOver10 wrote:
To answer this question: " is it possible to time your closing where your first payment is due Jan 1 which would include interest from the previous year and thus minimize paying any pre-paid interest in the previous year?"
I suppose the answer to this would be to close Nov 29th 2013. You would be paying Nov 29th and Nov 30th pre-paid interest at closing. Nov 20th is a Saturday so no closings happen over the weekends. I am assuming you are in a table funding state and not an escrow closing state where it would be a slightly more difficult to time.
From a practical POV I don't think Nov 29th will work because Thanksgiving is Nov 28th and all the attorney's and title co's and banks are closed for the Holiday plus the weekend.
You might be able to close Nov 27th, but you probably will run into Holiday time then too as many of the above take the day before Thanksgiving off.
You are probably safe with Nov 26th as a closing date. Your per diem interest will be for Nov 26 through Nov 30th. Then your first payment will be due Jan 1 2014.
Ok, thanks ... I think I got it. So anytime between Nov 15 and Nov 30 would be good because I would only pay pre-payment interest from closing date to Dec 1, first payment would be Jan 1, and December's interest would be paid in and deductible for 2014, correct?
