If I Close on the 1st When Is My First Mortgage Payment Due?

Homeownership is a significant financial milestone, bringing the responsibility of managing a mortgage. Understanding the mechanics of your mortgage payments is a fundamental aspect. Gaining clarity on when your first payment is due helps you prepare financially.

The Mortgage Payment Cycle

Mortgage payments operate “in arrears,” meaning each payment covers interest accrued during the previous month. For instance, a payment made on September 1st typically covers interest from August.

This payment method means your first mortgage payment is not due immediately upon closing. It is commonly scheduled for the first day of the second month following your closing date. If you close on June 1st, your first payment would typically be due on August 1st. The principal portion of your payment is generally applied forward, reducing your loan balance for the current month.

How Your Closing Date Affects Your First Payment

The timing of your closing directly influences the amount of “prepaid interest” or “per diem interest” collected at closing. This interest covers the period from your closing date through the last day of that same month.

This prepaid interest ensures the lender receives payment for every day the loan is outstanding, even before your first regular monthly payment begins. For example, if you close on the first day of a month, you pay a minimal amount of prepaid interest, covering only that single day. Your first full payment would then be due approximately two months later, on the first of the second subsequent month.

Conversely, if your closing occurs later in the month, you will prepay more interest to cover the remaining days. For instance, closing on January 28th would require you to pay prepaid interest for January 28th-31st. Your first full mortgage payment would still be due on March 1st, about a month after closing. This means you are not skipping a payment; the interest for the initial partial month is settled at closing.

Locating Your First Payment Information

The primary document for finding your first mortgage payment due date and amount is your Closing Disclosure. This standardized form provides a summary of your loan terms, closing costs, and financial details.

Within the Closing Disclosure, you will find a clear indication of your first payment due date and the full monthly payment amount. This document is provided to you several days before closing, allowing time for review and clarification. If you have questions or require further confirmation after closing, your loan servicer is the resource.

Loan servicers are the companies responsible for managing your mortgage loan, including collecting payments. They can provide specific details about your account, payment methods, and any grace periods. It is advisable to establish contact with your servicer shortly after closing to ensure timely payments.

Submitting Your First Payment

Once you have identified your first mortgage payment due date and amount, several methods are available for submission. Many loan servicers offer online portals where you can set up an account and make payments directly. This often includes options for one-time payments or establishing recurring automatic payments from your bank account.

You can also mail a check to your loan servicer, using the payment coupon or address provided in your welcome packet. Some servicers accept payments over the phone, though this method may sometimes incur a small processing fee. Setting up automatic payments is often recommended for its convenience and to help avoid potential late payment charges.