When Do You Make Your First Mortgage Payment?

Your First Mortgage Payment

Buying a home represents a significant personal and financial milestone. Understanding the precise schedule and mechanics of mortgage payments is an important aspect of financial planning for new homeowners. Familiarizing yourself with when and how these payments are structured helps ensure a smooth transition into homeownership.

Your First Payment Due Date

The first mortgage payment is not due immediately after closing. There is a grace period, with the initial payment scheduled for 30 to 60 days following the closing date. This delay allows time for the loan to be processed and for the homeowner to receive official payment information. The specific due date depends on the exact day of the month your closing occurs.

For instance, if you close in late July, your first mortgage payment might be due on September 1st. The first payment due date is clearly stated on your Closing Disclosure document, which you receive at least three business days before closing. Your loan servicer, the company that collects monthly payments, will also send a welcome packet and your first official mortgage statement detailing this date.

The Logic Behind Your First Payment

The timing of your first mortgage payment is tied to how mortgage interest is calculated and collected. At closing, you pay “per diem” or prepaid interest. This amount covers interest accruing from your closing date through the end of that calendar month. For example, if you close on March 15th, you pay interest for March 15th through March 31st at closing.

Following this initial per diem interest payment, your first full monthly mortgage payment covers interest for the entire following calendar month. For example, if you closed on March 15th, your first mortgage payment due on May 1st would cover interest for the full month of April. This structure ensures interest is always paid in arrears, meaning you pay for interest that has already accrued. Funds are also collected at closing to establish your initial escrow account, if applicable. This account holds money for future property taxes and homeowner’s insurance premiums, and these deposits contribute to the total amount due at closing, separate from your regular monthly principal and interest payment.

Getting Ready for Your First Payment

Once you have closed and understood the due date and logic of your first payment, prepare to make that payment. Your loan servicer will send your first official mortgage statement within a few weeks of closing. This statement confirms your due date, the amount due, and provides instructions on how to submit your payment.

Set up an online account with your loan servicer as soon as you receive their welcome information. This online portal allows you to view loan details, payment history, and offers various payment methods. You can pay online directly from your bank account, set up automatic recurring payments, or pay by mail or phone. Verifying loan details on your first statement against your Closing Disclosure and setting up payment reminders helps ensure a smooth and timely first payment.