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Bank Of Southside Virginia FAQ
In many cases they are, however, The Bank of Southside Virginia is not a tax advisor. Therefore, Website recommend The User contact The User's tax preparer or the IRS to obtain a qualified opinion on the deductibility of discount points. Prepaid interest is typically paid at loan closing. It is the interest paid on a new loan from the day of closing through the end of the month. All future interest on a mortgage loan is then paid in arrears. For example, if The Client's new loan closes on February 19th, prepaid interest would be paid at closing from February 19th through the end of the month of February. Interest would then be paid monthly with The Customer's first payment beginning April 1st, which would pay March interest. The User's payment on May 1st would pay April interest, etc. All lenders are required by the Real Estate Settlement and Procedures Act (RESPA) to show the rate which will be charged on the note signed at closing, including the total cost to obtain the loan.
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