When Is the First Mortgage Payment Due After Closing?
Unravel the timing of your first mortgage payment after closing. Learn the standard schedule and key steps to confirm your exact due date.
The first mortgage payment due date after closing is often unclear for new homeowners. Knowing what to expect helps with budgeting and financial planning.
The Typical First Payment Schedule
The first mortgage payment is generally not due immediately after you close on your home. Most commonly, your initial payment will be due on the first day of the month, one full month after your closing date. For instance, if you close in mid-August, your first mortgage payment would likely be due on October 1st.
Mortgage payments are made in arrears, meaning each payment covers the interest accrued during the previous month. For example, if you close in August and your first payment is due October 1st, that payment will cover the interest for September.
The Role of Per Diem Interest in Your First Payment
The delay in your first full mortgage payment is directly related to “per diem interest.” Per diem, Latin for “by the day,” refers to the interest charged on your loan daily from your closing date until the end of that month. This daily interest is collected at closing as part of your closing costs.
The collection of per diem interest at closing effectively “pre-pays” the interest that accrues from your closing date through the last day of that month. For example, if you close on August 15th, you will pay per diem interest for August 15th through August 31st. Because this interest for the remainder of the closing month is covered upfront, your first regular monthly payment then covers the interest for the entire subsequent month.
Confirming Your Specific Due Date
To pinpoint your exact first mortgage payment due date, refer to your official closing documents. The Closing Disclosure (CD) provides a summary of your loan terms, fees, and costs. You will find information about your projected payments and the first due date within this document, often on page 1 or in the “Projected Payments” section.
Beyond the Closing Disclosure, your loan servicer will send a welcome letter or package shortly after closing. This communication will state your first payment due date, the amount due, and instructions on how to make payments. Review these documents and contact your loan officer or servicer if you have questions or cannot locate this information.