How Long After Closing Is First Mortgage Payment Due?

A mortgage payment is a regular financial obligation to repay a loan used to purchase real estate, encompassing both the principal amount borrowed and the interest charged by the lender. Understanding when this first payment is due is important for financial planning and a smooth transition into homeownership.

The Standard First Payment Timeline

The initial mortgage payment is typically not due immediately after closing. Most often, the first payment is scheduled for the first day of the month, approximately 30 to 60 days following the closing date. This timing is due to the mortgage industry practice of “paying in arrears,” meaning you pay interest for the previous month’s use of the borrowed funds. Mortgage payments cover interest that has already accrued during the preceding month.

For instance, if a home closes on June 15, the first mortgage payment would generally be due on August 1. This payment would cover the interest accrued during July. The exact closing date within a month influences the specific due date, as mortgage payments are almost always due on the first day of a month. Closing earlier in the month often results in a longer gap before the first payment compared to closing late in the month.

While an early-month closing provides more time before the first payment, it also means a greater amount of prepaid interest is collected at closing. For example, if you close on May 3, your first payment might be due on July 1, covering interest for June. Conversely, if you close on May 25, your first payment could still be due on July 1, but with less prepaid interest collected. This payment structure ensures the lender is compensated for interest from the moment the loan closes.

Calculating Your Initial Mortgage Payment

At closing, homebuyers typically pay “per diem interest,” which is the interest accrued daily from the closing date through the end of that month. For example, if you close on October 10, you would pay per diem interest for the remaining 21 days of October at closing. This prepaid interest prevents double-charging, as your first full mortgage payment will then cover interest for the subsequent full month.

The first full mortgage payment will include principal, interest, and often contributions to an escrow account. An escrow account is established by the lender to collect funds for property taxes and homeowner’s insurance, which are then paid by the lender on your behalf when due. Initial funding for this escrow account is collected at closing to ensure sufficient reserves are available.

Your monthly mortgage payment is commonly referred to by the acronym PITI, representing Principal, Interest, Taxes, and Insurance. The principal portion reduces your loan balance, while interest is the cost of borrowing. Property taxes are assessed by local governments, and homeowner’s insurance protects your property. If your down payment was less than 20%, private mortgage insurance (PMI) may also be included in your monthly payment.

Confirming Your Official Payment Details

To determine the precise due date and amount of your first mortgage payment, you should consult your official closing documents. The Closing Disclosure provides a comprehensive summary of your loan terms and costs. It outlines “Prepaids,” which include per diem interest, and “Initial Escrow Payment at Closing” for taxes and insurance.

Additionally, the “Projected Payments” table on the Closing Disclosure details your estimated monthly payments over the life of the loan, itemizing principal, interest, mortgage insurance, and estimated escrow. Your lender will also typically provide a welcome packet or a “First Payment Letter” that explicitly states the first payment due date and how to make the payment.

If any confusion remains regarding your first payment, contacting your loan servicer directly is advisable. They can clarify any details and assist with setting up payment methods, such as auto-pay.