When Is Your First Mortgage Payment Due After Closing?

Buying a home is a significant life event, filled with anticipation and new responsibilities. While the closing date marks the official transfer of ownership, a common question arises regarding the timing of the first mortgage payment. Understanding this timeline is important for effective financial planning, ensuring a smooth transition into homeownership.

Understanding the Closing Date and Interest Accrual

Interest on your mortgage loan begins to accrue on the closing date. This means that even if your first full payment isn’t due immediately, the financial obligation starts from day one. Mortgage interest is typically paid in arrears, meaning the payment you make covers the interest from the previous month.

To account for the partial month between your closing date and the first day of the next full month, lenders charge what is known as “per diem interest.” This daily interest covers the period from your closing date up to the end of that month. This per diem interest is usually collected as a prepaid charge at closing to compensate the lender for the initial days the loan is outstanding.

Calculating Your First Mortgage Payment Due Date

The first mortgage payment is generally due on the first day of the month, approximately 30 to 60 days after your closing date. This delay occurs because per diem interest paid at closing covers the remainder of the month you closed. Your first full mortgage payment then covers the interest for the first full calendar month following your closing.

For example, if you close on your home on January 15th, you will pay per diem interest for January 15th through January 31st at closing. Your first full mortgage payment would then be due on March 1st, covering the interest accrued during the entire month of February. This structure ensures that interest is always accounted for without a gap, even with the delayed first payment.

Finding Your First Payment Information

The definitive source for your first mortgage payment date, amount, and loan servicer details is your Closing Disclosure (CD). This form provides the final terms of your loan, including your projected monthly payments. You should receive this document at least three business days before your scheduled closing date.

The Closing Disclosure will explicitly state the exact due date for your first payment and the monthly principal and interest amount. It also typically identifies your loan servicer. In addition to the Closing Disclosure, your loan servicer may send a welcome packet or letter after closing, providing instructions on how to set up your account.

Submitting Your First Payment

After reviewing your Closing Disclosure and any welcome materials, you will have the necessary details to submit your first mortgage payment. This information includes the servicer’s name, the correct payment address, and your loan account number. Many servicers offer convenient payment methods, such as online portals, mail, or phone payments.

Setting up an online account with your servicer is often recommended for easy access to your loan details and payment history. While automatic payments can simplify future payments, ensuring your first payment is made correctly can provide peace of mind. Confirming the payment has been successfully applied to your account helps establish a positive payment record from the outset.