When Is Your First Mortgage Payment After Closing?
Navigate the timing and process of your initial home loan payment after closing. Understand what to expect as a new homeowner.
A common question for new homeowners concerns the timing of their initial mortgage payment. Many believe the first mortgage payment is due immediately after closing. However, the payment schedule for a new mortgage typically allows for a period of time before the first full payment is required, giving homeowners a chance to settle into their new residence. This article aims to clarify when your first mortgage payment is usually due and what to anticipate from your lender.
Calculating Your First Mortgage Payment Date
Your first mortgage payment is generally due on the first day of the second month following your closing date. For instance, if you close in April, your first mortgage payment would typically be due on June 1st. This schedule exists because mortgage payments are made “in arrears,” meaning you pay for the interest accrued in the previous month.
This payment structure also involves “per diem interest,” which means “per day” interest. Per diem interest covers the period from your closing date through the end of that same month. For example, if you close on April 15th, you would pay interest for April 15th through April 30th at closing. This ensures the lender is compensated for the time the loan funds were disbursed before the regular monthly payment cycle begins.
The payment you make on June 1st would then cover the interest for the entire month of May, along with a portion of the principal. This is why you are not considered to be “skipping” a payment, even though more than 30 days might pass between your closing and your first payment. This amount is usually collected as part of your closing costs, which are detailed in your Closing Disclosure document.
What to Expect from Your Lender
Following your mortgage closing, your lender typically sends a “welcome packet” or initial communication. This packet is separate from the documents you signed at the closing table and is designed to provide all the necessary information for managing your new loan. It usually arrives a few weeks after closing, well before your first payment is due.
This initial communication will clearly state your loan number, which is essential for all future interactions and payments. It will also specify the exact date your first mortgage payment is due and the initial payment amount. The packet often includes contact information for your loan servicer, who will be responsible for handling your payments and inquiries.
The welcome packet outlines the various payment options available to you, such as online payment portals, mailing addresses for checks, and instructions for setting up automatic payments. Information regarding your escrow account, if applicable, for property taxes and homeowner’s insurance will also be included. This comprehensive information prepares you to make your first payment smoothly.
Making Your First Mortgage Payment
Once you have received and reviewed your lender’s welcome packet, you can proceed with making your first mortgage payment using one of the provided methods. Many homeowners opt for online payment, which typically involves creating an account on the loan servicer’s website using your loan number. From there, you can link a checking or savings account to initiate one-time payments or set up recurring automatic deductions.
Another common method is paying by mail, which requires sending a check or money order. It is important to include your loan number on the check or with a payment coupon provided by the lender to ensure proper crediting. Some lenders also offer the option to make payments over the phone, either through an automated system or by speaking with a customer service representative.
Setting up automatic payments is a convenient way to ensure your payments are made on time each month, often allowing you to choose your preferred draft date. This method requires providing your bank account and routing numbers to the servicer. Regardless of the chosen method, confirming the payment has been received and correctly applied to your account is a prudent step.