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Updated over 7 years ago,
Close ASAP or wait until October
What would you do in this circumstance? I am buying a new home for my primary residence and leasing out my current home. I do not have signed lease yet or a prospective tenant lined up, which is concerning.
Anyway, I have until 10/10 to close, but was rushing to close sooner in hopes I would have a tenant already. We were shooting for 9/29.
My lender told me if I close in October rather than on 9/29, then I won't have a mortgage payment on the new home until Dec. 1....Downside, I'll have to pay many more days of prepaid interest at $25/day.
Sooooo, what would you do!?
Close on 9/29, pay 2 days of prepaid interest at $25/day ($50), have first mortgage payment on 10/1, while having no tenant in rental property.
Or
Close on, say 10/6, pay 25 days of prepaid interest ($625), have first mortgage payment on 12/1, hopefully have a tenant in the rental property.