Escrow & Title
At a Michigan closing, prepaid interest (per diem interest) is charged to the buyer for:
AThe entire first month's interest
BInterest from the closing date through the end of the month✓ Correct
CThe last month's interest on the loan
DInterest for the first 7 days of the loan
Explanation
Prepaid interest (per diem interest) covers the interest from the closing date through the end of the month, since the first mortgage payment is typically due on the first day of the second full month after closing.
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