The way you paid mortgages and rents are different. Today we’ll discuss this.

 

Do you know the difference between how mortgages and rents are paid? Here’s a quick overview to refresh your memory:  Rent is paid in advance. For example, if you pay your rent on January 1, that rent applies to the entire month of January. Mortgages are the opposite. Your January mortgage payment won’t be due until February. This knowledge comes in handy when moving from a place you’re renting to a home you’re buying

If you have a lease that’s up, for example, on June 30, we can shoot for a target closing date on your new house somewhere in the middle of June, so let’s say June 15. This gives you two weeks to move out of your current residence and into your new property, and time to get your rental into a condition in which to get your deposit back. If you close on June 15, your first payment won’t actually be due until August 1. You will pay interest for the month of June, then the July payment isn’t due until August 1. This is invaluable when working with moving costs and ensuring you aren’t making double payments.

If you have questions about how this may work for your situation or real estate in general, please give us a call or send us an email. We would love to help you.