When Do You Start Paying Your Mortgage After Closing?

New homeowners often wonder when their first mortgage payment is due. This payment isn’t immediate and depends on your specific closing process.

The First Payment Date

Your first mortgage payment is typically due on the first day of the second full month after your loan closes. For example, if you complete your home purchase in January, your initial mortgage payment will be scheduled for March 1st.

This payment schedule is structured because mortgage interest is paid in arrears. This means the interest you pay in any given month covers the interest accrued during the previous month. Therefore, your payment due on March 1st would cover the interest that accumulated during the entire month of February. The principal portion of your payment also applies to the previous month’s outstanding balance.

How Your Closing Date Affects Payment Timing

Your closing date influences the upfront interest you pay and your first regular mortgage payment. At closing, you will pay “per diem” interest, also known as prepaid interest, which covers the period from your closing date through the last day of that same month.

For instance, if you close on January 15th, you will prepay interest for the 17 days remaining in January at closing. This prepaid interest satisfies your obligation for the initial partial month. Because January’s interest is covered, your first regular mortgage payment does not need to account for January’s interest.

Your first scheduled mortgage payment, due on March 1st, will then cover the interest accrued during the full month of February. This pushes your first payment out by 30 to 60 days from your closing date, ensuring continuous interest payment without an immediate mortgage payment after closing. The amount of per diem interest will be itemized on your Closing Disclosure.

Locating Your First Payment Details

The Closing Disclosure (CD) is the primary document that provides all the specific details about your mortgage loan, including your first payment due date and amount. This document is provided to you at least three business days before your scheduled closing, allowing time for review. It outlines all the costs associated with your mortgage.

On the Closing Disclosure, you will find a section dedicated to the loan terms, which clearly states the first payment due date. It will also list the total monthly payment amount, including principal, interest, taxes, and insurance (PITI), if applicable. The CD also contains the contact information for your loan servicer.

Beyond the Closing Disclosure, you may also receive a welcome packet from your loan servicer shortly after closing. This packet typically includes a detailed statement for your first payment, reiterating the due date and payment amount. The promissory note, another key closing document, also contains the terms of your repayment, including the first payment date.

Preparing for Your First Payment

Once you have identified your first payment due date and the loan servicer, you can begin preparing for the payment. Contacting your loan servicer is a practical next step to confirm their payment methods and any specific requirements. Most servicers offer multiple ways to pay, including online portals, automatic debits from your bank account, or mailing a check.

Setting up an online account or enrolling in auto-pay can help ensure your payment is made on time. You should verify the exact payment amount once more before initiating any transfer. Confirming the due date and amount with your servicer can prevent any misunderstandings or late fees.