The truth is there is some short-term benefit in terms of the amount of cash you have to bring to the closing table, but the benefit to your budget is temporary, and you should not let it drive the decision of when you should schedule the close. For example, if you were closing during April, say on the 10th, your closing costs would include your interest payment for April 10 through the 30th. If you were to close on April 25th, you would owe for only five days. It seems like it would make sense to close towards the end of the month, but here is why the benefit is only temporary.
Mortgage loans require that you pay the interest in arrears. That means your May 1st mortgage payment actually pays your April Bill. You would have covered April's payment at closing so you don't have a payment due that May 1. Your first payment would be due June 1 to cover May's bill. So by closing on April 10th, you would have to produce a larger amount of money at closing, but you also would enjoy a longer time period before you have to make your first mortgage payment.
