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!).

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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