Home Buying in Lathrop>Question Details

Suave, Home Buyer in California

ON THE GFE LINE 10, DAILY INTEREST CHARGES...IT HAS $36 A DAY IF YOUR SETTLEMENT IS // ? IT SHOWS A TOTAL OF $553, CAN SOMEBODY TELL WHAT THAT IS?

Asked by Suave, California Tue Apr 20, 2010

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4
Robin Silverberg’s answer
Suave, that is one of the few items on the GFE that can change because no one is expect to know exactly the day that you will close. Per diem is counted for every day, including the day you close, and if it's a 31 day month, you will have another day. That is why the dates should be put in correctly in the system for the day they are expecting you to close, and when your first payment is due. If you expect to be a bit short on fund, you may want to plan to close at the end of the month so you will only have a few days of per diem interest.
However, with this scenario, it is as Pat said, your first mortgage payment will come up in only 30 days.
0 votes Thank Flag Link Wed Apr 21, 2010
Pat is right on target! (Hey Pat! Glad you are still rockin' and rollin'!)

Per diem is easy to figure out - and is not truly a FEE - it is interest owed for the time you are in the home.

The adjustment is fair and equitable for Buyer and Seller.

Good Luck!

Gerry Dunn
Associate Broker
Serving Maryland, DC and Northern Virginia
0 votes Thank Flag Link Wed Apr 21, 2010
Hi Suave,

When you buy, you live in the property and than pay. In other words, if you settle on the 1st of April your 1st payment is on May 1 for the 30 days of April. If you close on the 15th of April, you'll pay the 15 remaining days of April at settlement and your 1st actual payment isn't until June1st.

The number you're seeing is the remaining days in the month you settle. The good news is you'll have 45 days until your 1st payment!

Best of luck! -Pat
0 votes Thank Flag Link Wed Apr 21, 2010
If your question is regarding daily interest, that is estimate of 15 day interest which will be adjusted on close of escrow up or dowen depending the day you will close escrow.
0 votes Thank Flag Link Tue Apr 20, 2010
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