When Is the First Mortgage Payment After Closing?

For new homeowners, understanding the financial timeline after closing on a property can bring about many questions, especially regarding when the first mortgage payment is due. Navigating this initial period requires insight into standard mortgage practices and the specific details of your loan. Knowing the timing and composition of this first payment is a valuable step in managing your new home’s finances effectively.

Determining the First Payment Due Date

The first mortgage payment is not due immediately after closing; instead, there is a customary delay. Most mortgage payments are due on the first day of the month, usually one full month (approximately 30 to 45 days) after the closing date. For instance, if you close on your home on June 23, your first mortgage payment would generally be due on August 1. This means you will not have a payment due in July.

This delay occurs because mortgage interest is paid in arrears, meaning you pay for the interest that accrued in the previous month. Therefore, a payment made on August 1 covers the interest for the month of July. The specific timing of your closing within a month influences the exact number of days until your first payment. If you close early in the month, such as May 3, your first payment might be due on July 1, providing a longer gap. Conversely, closing late in the month, like May 25, would still result in a July 1 due date, leading to a shorter period before your first payment.

The precise first payment due date is found within your closing documents. The Promissory Note and the Closing Disclosure are documents that explicitly state when your initial payment, and all subsequent payments, will be expected. Reviewing these documents carefully provides the most accurate information for your loan.

Components of the First Payment

At closing, lenders collect what is known as “pre-paid interest” or “per diem interest.” This is the interest accumulated daily from your closing date up to the last day of that same month. For instance, if you close on June 10, you will pay interest for June 10 through June 30 at closing. This upfront payment ensures the lender is compensated for the period the loan has been disbursed before the regular monthly billing cycle begins.

Because the interest for the closing month is paid at the closing table, your first full mortgage payment will then cover the interest for the next full month. This structure logically leads to the delayed first payment due date. Your regular monthly payment will include both principal and interest.

Receiving Your First Mortgage Statement

After your loan closes, your mortgage servicer will send you an official mortgage statement. This document serves as the formal notification of your upcoming payment obligations. You can typically expect to receive this statement a few weeks before your first payment is due.

The mortgage statement provides important information, including the exact due date for your first payment, the total amount due, and contact information for your loan servicer. It also details how your payment is allocated between principal, interest, and any escrow amounts. Once you receive this statement, you can set up your preferred payment method, whether through an online portal, mail, or by establishing automatic payments from your bank account.

It is important to review your first mortgage statement carefully and compare it against the details provided in your closing documents to ensure accuracy. If you do not receive your mortgage statement within the expected timeframe, or if you notice any discrepancies, it is advisable to contact your loan servicer directly. Proactive communication helps ensure you are prepared for your first payment and maintain good standing with your mortgage.