When Is My First Mortgage Payment Due?

Buying a new home is a significant milestone. Understanding when your first mortgage payment is due is a fundamental aspect of financial planning. Knowing this date helps new homeowners manage their finances and smoothly transition into their mortgage obligations.

The Closing Date’s Impact

The date your mortgage loan closes directly influences when your initial payment becomes due. Mortgage interest operates on an “in arrears” system, meaning the interest you pay each month covers the preceding month’s usage of the loan. For instance, a payment made on October 1 covers interest accrued during September. At closing, borrowers typically pay “prepaid interest” covering the period from the closing date through the end of that current month. This ensures the lender receives interest for every day the loan funds have been disbursed.

This prepaid interest amount is calculated and included in your closing costs. For example, if you close on July 10, you would prepay interest for July 10 through July 31. This arrangement allows your first regular mortgage payment to cover interest for the first full month after closing.

Common Payment Timing Rules

The most common arrangement for your first mortgage payment is for it to be due on the first day of the second full month following your closing date. This means a significant gap often exists between closing and your initial payment. For example, if you close on January 15, your first payment would typically be due on March 1, covering the interest accrued in February.

This common pattern provides new homeowners with some financial breathing room after the expenses of closing. The precise timing is always detailed in your specific loan documents.

Locating Your Official Due Date

To pinpoint the exact due date for your first mortgage payment, consult your official loan documents. The Closing Disclosure, received before closing, provides a summary of your loan terms, including the first payment date. The promissory note, the legal agreement to repay the loan, also explicitly states payment details and the first due date.

Your loan servicer, responsible for collecting monthly payments, will also communicate this information. They typically send a welcome packet after closing with your payment schedule and instructions. If you have difficulty locating this information in your documents or online, contacting your loan servicer directly is the most reliable way to confirm your specific due date.

Initial Payment Considerations

The first mortgage payment may have unique components compared to subsequent monthly payments. While interest for the closing month is prepaid, your first regular payment will encompass the full principal and interest for the first complete month of your loan. This payment covers accrued interest for the prior full month and begins to reduce your loan’s principal balance.

If your mortgage includes an escrow account for property taxes and homeowner’s insurance, the initial funding of this account might also impact your upfront costs. Lenders typically collect an initial deposit at closing to establish a reserve, ensuring sufficient funds are available when property tax and insurance bills become due. This initial escrow contribution, along with prepaid interest, makes the funds needed at closing larger, but subsequent monthly payments will reflect the standard principal, interest, taxes, and insurance (PITI) amount.