When Is the First Mortgage Payment Due After Closing?

Understanding when your first mortgage payment is due after closing is a common inquiry for new homeowners. This timeline is not always immediate and can be influenced by several factors. This article explains the typical schedule for your initial mortgage payment and the details that determine its exact due date.

The Typical First Payment Schedule

Your first mortgage payment is typically due on the first day of the month, one full month after closing. Mortgage payments are made in arrears, meaning a payment covers interest accrued during the previous month, not the current one. For example, if you close in September, your first payment will likely be due on November 1st, covering October’s interest.

While you are not skipping a payment, this timing accounts for how interest is calculated and handled at closing. This approach helps align your payment schedule with the typical monthly billing cycle lenders use.

How Your Closing Date Affects the First Payment

The specific day you close significantly influences when your first mortgage payment is due. If you close early in a month (e.g., May 3rd), your first payment might be due on July 1st, providing nearly two months. Conversely, if you close late (e.g., May 25th), your first payment would still be due on July 1st, resulting in a shorter gap between closing and your initial payment.

This variation occurs because interest begins to accrue from your closing date. Despite the difference in the waiting period, the first monthly payment amount typically remains consistent regardless of the closing date.

What Your First Payment Covers

At closing, borrowers typically pay “prepaid interest,” also known as per diem interest. This covers interest accrued on your loan from the closing date through the end of that same month. For example, if you close on March 12th, you prepay interest for March 12th through March 31st at closing.

Because this initial interest is paid upfront, your first scheduled mortgage payment covers the principal and interest for the entire next full calendar month following the month of closing. If you closed in mid-March, your first mortgage payment, due May 1st, would cover April’s principal and interest.

Locating Your First Payment Information

Your closing documents contain definitive information about your first mortgage payment, including the precise due date and amount. Refer to your Closing Disclosure (CD), which provides a comprehensive overview of your final loan details. This document outlines the loan terms, costs, and projected monthly payments.

Your loan servicer also typically provides a welcome packet or “First Payment Letter” after closing. This letter contains all necessary information for making your initial payment, including where and how to send it. Setting up online access or direct debit with your servicer can help ensure timely payments and provide easy access to your account details.