When Do You Start Paying Your Mortgage After Closing?

Navigating the period immediately following a home closing can bring both excitement and uncertainty, particularly concerning when the first mortgage payment will be due. Understanding the precise timeline and the components of this initial payment helps new homeowners prepare financially. This article clarifies what to expect regarding payment schedules and amounts after the loan is finalized.

Determining Your First Mortgage Payment Due Date

Your first mortgage payment is never due immediately after closing. Mortgage interest is paid “in arrears,” meaning you pay interest for the previous month’s usage of the loan funds. This structure means your first payment is scheduled for the first day of the second month following your loan closing.

For example, if you close on your home any day in April, your first mortgage payment will be due on June 1st. This allows for the interest accrued during May to be paid in arrears on June 1st. Similarly, if your closing occurs in May, your first payment will be due on July 1st, covering the interest for June.

This consistent pattern provides a predictable schedule for new homeowners. The gap between closing and the first payment due date offers a transition period, aligning the payment cycle with standard monthly billing practices.

Understanding Your First Mortgage Payment Amount

The amount of your first mortgage payment is influenced by “per diem interest,” also known as prepaid or prorated interest. This charge, collected at closing, covers interest accrued from your closing date through the end of that month. For instance, if you close on April 15th, you pay per diem interest for April 15th through April 30th at closing.

Because this initial interest is covered upfront, your first full monthly mortgage payment—due on the first of the second month after closing—will cover interest for the entire preceding calendar month. For the April 15th example, your June 1st payment would cover interest for the full month of May. This approach ensures interest is accounted for continuously from loan disbursement.

Your first full mortgage payment includes four main components: Principal, Interest, Taxes, and Insurance (PITI). Principal is the portion that reduces the outstanding loan balance. Interest is the cost of borrowing, calculated on the remaining principal balance. Taxes refer to property taxes, often collected by the loan servicer and held in an escrow account. Insurance includes homeowner’s insurance premiums, also frequently collected and managed through escrow.

Receiving Payment Information and Making Your First Payment

After your loan closes, expect a welcome packet or statement from your mortgage loan servicer within a few weeks, often before the end of the closing month. This packet will contain crucial details, including your loan number, online account setup instructions, and various payment methods.

Mortgage servicers offer several convenient ways to submit your monthly payment. Many borrowers pay online through the servicer’s dedicated web portal, allowing one-time payments or setting up recurring automatic deductions. Other common methods include mailing a check directly to the servicer or making a payment over the phone. Choosing an automatic payment option can help ensure payments are made on time and avoid late fees.

If you do not receive communication or a statement from your mortgage servicer within a few weeks after closing, proactively contact your loan officer or the servicer directly. Obtaining your loan number and confirming the payment due date and amount is important to prevent any missed payments.