The Closing Disclosure sometimes includes a figure representing mortgage interest for the period from the date of closing to the end of the month. What do we call this figure?
A. Pre-paid interest
B. The buyer will not have to make their first mortgage payment (which includes interest owed on the loan) until the first of the following month.
C. For example, if the closing occurs on March 15th, the first mortgage payment will not be due until May 1st. The May 1st payment will be for the month of April; however, the buyer still has to pay the interest on the loan from March 15th to April 1st.
