When Is Your First Mortgage Payment Due?

Homeownership brings both excitement and new responsibilities. One of the most common questions for new homeowners centers on the timing of their first mortgage payment. Understanding when this payment is due is important for effective financial planning and avoiding unexpected financial strain. The process involves specific financial cycles and documents that determine the exact date.

Understanding the Mortgage Payment Cycle

Mortgage interest operates “in arrears.” This means a monthly mortgage payment covers interest accrued during the previous month, not the current one. For instance, a payment on September 1st typically covers interest from August. This system is standard practice across the mortgage industry and helps provide a clear picture of interest obligations based on the actual loan duration.

The typical mortgage payment cycle involves a payment due on the first day of each month. This payment includes a portion for principal, interest, and often amounts for property taxes and homeowner’s insurance, held in an escrow account. As the loan progresses, more of each payment goes towards reducing the principal balance, while less is allocated to interest.

Determining Your First Payment Due Date

The closing date directly influences when the first mortgage payment is due. Typically, the first payment is scheduled for the first day of the second full month after closing. This creates a “gap” period, often 30 to 60 days, between closing and the first payment due date. For example, if a loan closes on March 12th, the first payment is generally due on May 1st, covering April’s interest.

During this gap, a concept called “per diem interest” comes into play. This refers to daily interest from the closing date to the end of that month. This amount is usually collected at closing as part of the prepaid costs. For example, if closing occurs on June 15th, the borrower pays per diem interest for June 15th through June 30th at closing. The first full mortgage payment is then due on August 1st, covering July’s interest.

Closing earlier in the month often results in a longer period before the first full payment is due, but it also means paying more per diem interest upfront. Conversely, closing later in the month shortens the time until the first payment but reduces the per diem interest paid at closing. The first payment must be made within 60 days of closing in many cases.

Confirming Your Payment Details

After closing, confirm the exact date and amount of the first mortgage payment. The Closing Disclosure (CD) is a document provided by the lender at least three business days before closing. This document details loan terms, projected payments, and all associated costs, including the first payment due date and amount. Borrowers should review the CD and compare it to their initial Loan Estimate to ensure accuracy.

Additionally, the loan servicer, who collects monthly payments, typically sends a welcome packet or letter within a few weeks of closing. This communication provides information such as the first payment due date, the payment amount, and instructions on how to set up payments. If there is any confusion or if these documents are not received, contact the loan servicer to clarify details.

Making Your First Payment

Once the first payment due date and amount are confirmed, ensure the payment is made on time. Mortgage servicers offer various methods for submitting payments. Many borrowers pay online through the servicer’s portal or mobile application. Other common methods include mailing a check or money order, or making a payment over the phone.

Setting up automatic payments (autopay) is convenient for consistent, on-time payments and avoiding late fees. However, it is prudent to make the first payment manually, especially if autopay is not immediately active or if there are uncertainties regarding setup. Confirming sufficient funds are available before the payment is due is important. If a payment is missed or issues arise, contact the loan servicer immediately to discuss options and prevent complications.