Beware Pre-Paid Interest 

It is a rare day indeed when a mortgage loan closes on the first day of the month. The world just does not work that way. Instead, closing may be on the 22nd or some other date. Lenders react badly to this. They will charge you pre-paid interest. What is it? It is the interest that accrues on the loan from the day money is discharged to the escrow and seller and the end of the month. For instance, the interest accumulated from the 22nd to the end of the month. The lender will require you to pay this amount up front at the closing. Don’t ask me why!