Refinancing an FHA mortgage

Do you know the difference in how interest is collected on a conventional mortgage loan vs an FHA mortgage loan?

On a conventional loan, interest accrues daily. So every day that loan is outstanding, you owe one more days interest to the lender.

On an FHA loan, interest accrues monthly. So once the calendar turn to a new month, you are charged interest for the entire month.

When you are refinancing your FHA mortgage, time the closing to take place at the end of the month. Allow time for the 3 day rescission period to run out and have the loan “disburse” on the last business day or second to last business day of the month. There’s no need to double pay a month