This is a YouTube video titled "When do my Payments Start?! #interestrate #homeloans #homebuyer #mortgagebroker" containing a monologue by Derek McGowan explaining how prepaid interest works on home loans, specifically detailing the timing of monthly payments after closing a home loan. The content was created on November 25, 2023, and is focused on educating homebuyers about mortgage payment schedules.
When you close on your home loan, the monthly payments don't start right away. Let's say, for example, you close in January. No payments in January, no payments in February. Payments are in March, and you really could stretch to the 15th of March if you really, really wanted to for that first payment. But then that March payment covers the interest for the month of February, and going forward, everything runs on track. Where you pay interest in arrears for the month you were previously in the house, but nothing covered January, that's what prepaid interest is. You have to cover that first partial month, whether it's one day left in January to close the very end, then it's less prepaid interest to closing the closing cost, or bit less, but your payments start a little sooner. Or if it's the very beginning of January, well, the payments don't start for two plus funds, but you have to cover, you know, pretty much a whole month. But that's how prepaid interest works. You cover that first partial month to get you back on track for your interest on your home loan.
