When Is the First Payment Due After Closing on a House?

Buying a home represents a significant financial milestone. Understanding your first mortgage payment is an important next step. Knowing when and how this initial payment is due helps ensure a smooth transition into homeownership. This understanding is crucial for effective financial planning.

Understanding the Typical First Payment Timeline

The first mortgage payment is typically due on the first day of the month, 30 to 60 days after the closing date. This payment schedule arises because mortgage payments are made “in arrears,” meaning they cover the interest accrued during the preceding month. For example, a payment made on October 1st covers the interest from September.

At closing, lenders typically collect “per diem interest,” which is the daily interest accrued from the closing date through the end of that month. This compensates the lender for the period you own the home before your first full monthly payment officially begins. Consequently, while it might seem like you are skipping a payment, you are not; the interest for the initial partial month is paid upfront.

Factors Determining Your First Payment Date

The specific date of your first mortgage payment is influenced by your closing date. If you close early in the month, such as on May 3rd, your first payment might not be due until July 1st. This provides a longer period between closing and the first payment, though it requires paying more prepaid interest at closing.

Conversely, closing late in the month, on May 25th, means your first payment would still be due on July 1st. This results in a shorter interval before your initial payment, requiring less prepaid interest upfront. Regardless of the closing date, the fundamental principle remains that your first full payment covers the interest from the preceding full calendar month.

Finding Your First Payment Information

Details of your first mortgage payment are documented in several official sources. Your Closing Disclosure (CD), received at least three business days before closing, provides an overview of your loan terms and projected monthly payments. This document outlines the initial estimated payment amount.

After closing, your loan servicer, the company that manages your mortgage, will send a welcome packet. This packet contains definitive information, including your exact first payment due date, payment amount, your account number, and instructions on how to make payments. It is important to note that your loan may be transferred to a new servicer after closing, and this new servicer will send their own welcome communication.

If you have not received this welcome packet within a few weeks of closing, or if any information remains unclear, checking the servicer’s online portal or contacting their customer service is advisable. This ensures you have all necessary details to prevent delays or issues with your initial payment. Confirming this information well in advance of the due date can help avoid potential late fees.

How to Make Your First Mortgage Payment

Making your first mortgage payment is a straightforward process with multiple available options. Many servicers offer convenient online portals or mobile applications where you can set up one-time payments directly from your checking or savings account. This method provides a fast and efficient way to ensure your payment is processed promptly.

Alternatively, you can typically mail a check, cashier’s check, or money order to your servicer. When sending payments by mail, always include your mortgage account number to ensure proper application of funds. Some servicers also allow payments by phone, which can be useful if you are close to the due date, though this option may sometimes involve a processing fee.

For ongoing convenience and to avoid missing future payments, consider setting up automatic payments through your servicer’s system. This ensures your mortgage payment is automatically deducted on the due date each month, providing peace of mind and helping maintain a consistent payment history.