What is the buyer responsible for in terms of interest during the closing date?

The buyer is responsible for paying interest for the day of closing because interest on the loan begins to accrue starting on the day that the loan is disbursed, which typically coincides with the closing date. When a buyer closes on a property, the lender funds the loan on that day, and thus the buyer becomes responsible for any interest that accrues on that loan from the moment it is funded.

This policy ensures that lenders receive interest for the period in which they are providing the buyer access to borrowed funds. It is essential to consider that buyers often have their first mortgage payment due the following month after closing, which incorporates the interest accrued from the day of closing.

Overall, the understanding of this responsibility helps buyers prepare for their financial obligations at the time of closing and is a fundamental aspect of real estate transactions.