When Is the First Mortgage Payment Due?

The first mortgage payment is not typically due immediately after closing, unlike many other recurring bills. This delay is a standard practice, designed to accommodate how mortgage interest is calculated. Understanding this timeline helps new homeowners plan their finances and avoid unexpected issues.

Understanding the Standard First Payment Schedule

The first mortgage payment is generally due on the first day of the month following a full month after your closing date. For instance, if you close in mid-March, your initial mortgage payment would typically be due on May 1st. This schedule provides a buffer period before regular payments begin.

This delay occurs because mortgage interest accrues in arrears, meaning you pay interest for the preceding month. Interest begins to accumulate from your closing date. At closing, you typically prepay interest for the remaining days of the month in which you close. Your first regular payment then covers the interest and principal for the first full calendar month following your closing.

For example, if you close on June 10th, you will pay interest from June 10th to June 30th at closing. Your first monthly payment, due on August 1st, will then cover the interest and principal for the entire month of July. This structure ensures the lender receives all accrued interest without requiring an immediate full payment for the subsequent month.

Pinpointing Your Exact First Payment Date

To determine your exact first mortgage payment due date, consult your official closing documents. These documents contain the details of your loan agreement. Reviewing them carefully after closing is important to prevent missing payments.

The Closing Disclosure (CD) states your first payment due date. This five-page form provides a comprehensive summary of your loan terms, projected payments, and closing costs. The Promissory Note, a legally binding agreement, outlines the terms of repayment, including the interest rate and the payment schedule. This note will specify the date your first payment is due.

Additionally, your loan servicer, the company that collects your monthly payments, will send a welcome packet shortly after closing. This packet confirms your first payment date and provides instructions on how to make payments. While a standard schedule exists, minor variations can occur based on your closing date and lender policies, making a thorough review of these documents essential.

Preparing for Your First Mortgage Payment

After closing, anticipate receiving a welcome letter and an initial mortgage statement from your loan servicer. The welcome letter provides details about your new servicer, including contact information and sometimes a new loan number. Your first statement might arrive closer to your payment due date, so being proactive in your preparation is beneficial.

Understanding the components of your mortgage payment is helpful. A typical mortgage payment often includes Principal, Interest, Taxes, and Insurance (PITI). The mortgage statement will detail how your payment is allocated among these components, providing clarity on the total amount due.

Set up your preferred payment method. This often involves registering for an online account with your loan servicer to manage your mortgage and submit payments digitally. Many homeowners choose to set up automatic payments (auto-pay) directly from their bank account to ensure timely payments. Alternatively, you can understand options for mailing payments or making phone payments. If you do not receive a welcome packet or statement in a timely manner, generally within a few weeks of closing, it is advisable to proactively contact your loan servicer to confirm your account details and payment due date.

Making Your First Payment

When your first payment due date approaches, make the payment using the methods you previously prepared. For online payments, navigate to your servicer’s online portal, log in to your account, and follow the instructions to submit the payment. This process usually involves selecting the payment amount and the bank account from which funds will be drawn.

If you prefer to mail your payment, send it to the correct address provided by your servicer in your welcome packet or on your statement. Include your payment coupon or loan number to ensure proper application of funds. Some servicers also offer the option to make payments over the phone, which typically involves providing your loan details and payment information to a representative or an automated system.

After submitting your payment, obtain a confirmation. For online payments, this might be a confirmation number or an email receipt. If paying by mail, keep a record of your mailed payment and monitor your bank account for the cleared check. Timely payment on or before the due date is important to avoid late fees and to maintain a positive payment history, which contributes to your credit standing.