Anyone closing on the sale of their home today may be puzzled why the pay-off amount in their HUD-1 (closing statement) exceeds their current (online) mortgage balance.
The explanation?
Banks assume that they won’t receive the proceeds from closing until the next business day — and therefore keep the “interest meter” running.
Ordinarily, that would be for one extra day — or, ahead of a weekend, two.
However, ahead of a three-day weekend, the extra amount that’s accrued can actually be a meaningful amount — and temporarily throw Sellers (and their Realtors!).
