Interim Interest
Unlike rent (which is prepaid at the beginning of the month), your mortgage payment is paid in arrears (you live in the property for 30 days and then make the payment).

The payment due on the 1st of each month is for interest accrued (charged) during the prior month. For example, a Sept 1st mortgage payment represents interest accrued for the month of August. The only time mortgage interest is prepaid, is when you close on a new loan. If your closing occurs on July 22nd, then the daily interest (per deim interest) for July 22nd - July 31st would be paid at the closing table. Your first mortgage payment would be mailed September 1st (not August 1st). This payment would be for interest accrued during August.

It's a little complicated, so just remember the per deim interest is a non-negotiable closing cost item that is determined by the terms of you loan and your closing date.

Escrows
Most Lenders require that you escrow for Real Estate Taxes and Homeowners Insurance. Think of escrows as a "forced savings" plan. Each month, a portion of your mortgage payment is deposited into your escrow account.  Your real estate taxes and homeowners insurance bills are paid by the Lender from this escrow account.

At the closing table, the Lender will require that you make an initial deposit into your escrow account . The amount deposited is depending upon your taxes, your homeowners policy and your closing date.

Town's Recording Fee
All property transactions are recorded in your Town Hall. Your Town charges a fee to recrod this information. Your closing attorney will record the information in the Town Hall and collect the fee from you. The fee is determined by your Town and is non-negotiable.