When Do You Make Your First Mortgage Payment?

Understanding the timing of your first mortgage payment is a common question for new homeowners. This initial payment marks the beginning of your financial commitment, and knowing when it is due is an important step in managing your new mortgage responsibly.

The Standard Payment Schedule

Your first mortgage payment typically does not occur in the calendar month immediately following your home’s closing date. Instead, it is commonly due approximately 30 to 45 days after closing. For instance, if you close on your home in mid-September, your first payment will likely be due on November 1st. This timing allows for the collection of interest that accrues in the prior month.

Mortgage payments are generally paid in arrears, meaning each payment covers the interest that accrued in the previous month. Therefore, the payment you make on the first of a given month covers the interest from the month that just ended. This inherent delay in payment for the interest incurred is a fundamental aspect of mortgage financing.

How Your Closing Date Influences the First Payment

The specific date you close on your home plays a direct role in determining when your first full mortgage payment is due. Mortgage interest begins accruing on the day your loan funds, which is typically your closing date. Because mortgage payments cover interest in arrears, a mechanism called “per diem interest” comes into play at closing.

Per diem interest refers to the daily interest charged from your closing date through the end of that specific closing month. This amount is collected at closing as part of your prepaid costs. For example, if you close on June 15th, you will pay per diem interest for the period from June 15th to June 30th at closing. This upfront payment covers the partial month’s interest, effectively pushing your first full mortgage payment out by approximately one full month.

Your first full mortgage payment then covers the interest for the entire subsequent calendar month. For instance, if you close on June 15th and pay the per diem interest for the remainder of June at closing, your first full mortgage payment would be due on August 1st, covering the interest for the month of July. Closing later in the month can result in a smaller per diem interest payment at closing, but your first full payment will still align with the first of the month following the full month after closing.

Locating and Making Your First Payment

Identifying the exact due date for your first mortgage payment and understanding how to make it involves reviewing specific documents received during the closing process. The Closing Disclosure (CD) is a central document that provides detailed financial information about your loan, including your first payment date. Lenders are required to provide this document at least three business days before closing, allowing time for review. The promissory note, another document in your closing package, also explicitly outlines your payment due date and amount.

In the weeks following closing, you will typically receive a welcome packet from your loan servicer. This packet contains crucial information, including your new loan number, instructions for setting up an online account, and details on how to submit payments. It is important to note that mortgage servicing can sometimes transfer, so the entity you make payments to might change over the life of your loan; however, you will receive notifications for any such transfer.

Once you have identified your loan servicer and confirmed your due date, you can typically make your payment through various methods. Most loan servicers offer online portals where you can set up an account and make payments electronically, often including options for automated withdrawals. Other common methods include mailing a check or money order to your servicer, or making payments over the phone. It is important to ensure any mailed payments include your mortgage account number to ensure proper application.