When Do You Start Making Mortgage Payments?
Understand when your first mortgage payment is due and how to navigate the initial steps of home loan repayment after closing.
Understanding when the first mortgage payment is due is a common concern for new homeowners. Navigating the initial stages of homeownership involves familiarizing oneself with payment schedules.
Understanding Your First Payment Due Date
Your first mortgage payment typically becomes due on the first day of the month, approximately one full month after your closing date. For example, if you close on your home in mid-September, your first payment would likely be due on November 1st. This timing accounts for the way mortgage payments are structured, which is “in arrears,” meaning you are paying for the previous month’s interest.
The delay between closing and your first payment does not mean you are receiving a free period. Instead, the first full payment covers the interest accrued for the first complete calendar month after your closing. For instance, if you closed on September 14th, the November 1st payment would cover the interest for the entire month of October. Your mortgage agreement and closing documents will provide the exact due date, which you should carefully review. Most lenders require the first payment within 60 days of closing.
The Role of Per Diem Interest
A concept that often arises during the closing process is “per diem interest,” also known as interim or prepaid interest. This refers to the interest charged by the lender for the partial month between your closing date and the end of that same calendar month. For example, if you close on June 15th, you will owe per diem interest for the period from June 15th through June 30th. This amount is typically collected at closing as part of your prepaid charges, ensuring the lender is compensated for the period they funded the loan before the regular monthly payment cycle begins.
Per diem interest is not your first full mortgage payment; it covers this initial, partial period. It is calculated based on your loan amount, interest rate, and the number of days remaining in the closing month. Closing later in the month can result in a lower per diem interest payment.
Receiving and Interpreting Your First Mortgage Statement
After your home closing, your loan servicer will send your first mortgage statement, usually arriving a few weeks before your payment is due. This document is important for confirming your payment obligations and understanding your loan details. The statement will clearly indicate the exact due date for your payment and the total amount owed.
The statement also provides a detailed breakdown of what your payment covers, typically including principal, interest, and any amounts allocated to an escrow account for property taxes and homeowner’s insurance. Verify that the due date on the statement matches the information provided in your closing documents. The statement will also list your loan account number and the servicer’s contact information for any inquiries.
Making Your Initial Mortgage Payments
Once you have received and reviewed your first mortgage statement, the next step is to make your payment. Mortgage servicers offer several common payment methods to accommodate different preferences. These often include online portals, where you can make one-time payments or set up recurring automatic payments (ACH withdrawals) directly from your bank account.
Other options include paying by mail with a check or over the phone. Setting up automatic payments is recommended to ensure timely submission and to avoid late fees, which lenders may charge if payments are not received by the due date. Confirming that your first payment has been received helps establish a consistent payment history.