What will you actually wire at closing?

Illinois property taxes are billed in arrears, so at closing the seller has owned the home for part of a tax year that has not been billed yet. The seller credits you for that time, and because the bill can run into five figures, so can the credit. This tool assumes the seller has already paid last year's full bill, which is common once the second installment is out. A closing early in the calendar year, before the prior year's bill is paid, produces a substantially larger credit. Your attorney computes the exact figure at the table. Under paragraph 12a of the Multi-Board contract, the proration is final as of closing with no truing-up later, which is exactly why the percentage is worth negotiating.

Prepaids and escrow are timing, not extra cost. Prepaid interest covers the days from your closing date through the end of that month. Your first full year of homeowners insurance is paid at closing. Your initial escrow deposit seeds the account the lender uses to pay your future tax and insurance bills. Closing later in the month lowers your prepaid interest, though a good closing date is worth more than the small savings.