Is it cheaper to close on a house at the end of the month? It is a misconception that it costs less to close on a home at the end of the month. It does, however, cost you less at the closing. When you close on a mortgage the lender will charge you interest, per day, until the end of the month. If you close on the first of the month, 30 days worth of interest would be paid at the closing. If you closed on the last day of the month, one day would be due. Initially, it sounds like it is less expensive to close at the end of the month, until you understand why you are paying the interest at the closing.  Basically, your lender doesn’t put you into their accounting cycle until the first of the next month, and your first payment will be due on the first of the following month. (example: a closing date of December 10 would have 20 days interest due, but the first payment would be due February 1st). So, if you close the last day of the month, your closing costs are less, but you have a mortgage payment due in a month and 1 day. If you close in the beginning of the month, you pay more at closing, but do not have to make a mortgage payment for 2 months. After you are in the home for two months, the costs are the same.