Finance
A Maryland borrower who closes on a new home on March 15 will owe prepaid interest at closing for:
AThe entire month of March
BThe remaining days in March — March 15 through March 31✓ Correct
CThe first payment in April only
DNo prepaid interest is required in Maryland
Explanation
At closing, borrowers prepay mortgage interest for the partial month from the closing date through the end of that month. The first regular mortgage payment then covers interest for the following month.
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