When Is Your First Mortgage Payment Due After Closing?

A common question for new homeowners is when their first mortgage payment is due. Unlike rent, which is typically paid at the beginning of a period, mortgage payments do not usually begin immediately after closing on a property. This delay can sometimes cause confusion, but understanding the underlying reasons and the specific timeline is important for proper financial planning. The period between closing and the first payment allows for administrative processing and aligns with how mortgage interest is calculated.

Understanding Your First Mortgage Payment Schedule

Your first mortgage payment is typically scheduled for the first day of the second month following your closing date. For example, if you finalize your home purchase on January 15th, your initial mortgage payment would likely be due on March 1st. This timing provides a buffer, often ranging from 30 to 60 days, before your first full payment is required.

This delay occurs because mortgage payments are made “in arrears,” meaning the payment covers the interest that accrued in the preceding month, not the current one. At closing, you will pay “pre-paid interest,” which covers the days from your closing date through the end of that same calendar month. For instance, if you close on January 15th, the pre-paid interest covers January 15th through January 31st. The payment due on March 1st then covers the interest and principal for the entire month of February. While this might seem like you are skipping a payment, you are not; the interest for the interim period is accounted for at closing.

Locating Your Specific Due Date and Payment Information

To find your first mortgage payment due date and other details, review the documents you received at closing. The Promissory Note is a primary legal document that outlines your agreement to repay the loan, including the total amount owed, the interest rate, the repayment period, and the specific dates when payments are to be made. It will also specify where payments should be sent and the consequences of late payments.

The Closing Disclosure is a five-page statement detailing the final terms of your mortgage loan. This document lists your monthly payment amount, the loan servicer (which may differ from your original lender), and initial instructions for setting up payments. The Closing Disclosure is provided to you at least three business days before closing, allowing you time to review it for accuracy and ensure the terms align with your expectations. You will find detailed breakdowns of costs, including any pre-paid interest, within this disclosure.

Initiating Your First Mortgage Payment

Once you identify your due date and loan servicer information from your closing documents, you can make your first payment. Most loan servicers offer multiple convenient methods for submitting payments. The most common approach involves setting up an online account through the servicer’s website or mobile application.

To set up an online account, you will need your loan account number, which is found in your closing paperwork. After creating your account, you can link a checking or savings account for electronic payments. Many homeowners choose to set up automatic payments (AutoPay) to ensure payments are made on time each month, reducing the risk of late fees.

Other common methods include mailing a check with your payment slip, making a payment over the phone using your bank account details, or in some cases, visiting a local branch if the servicer has physical locations. Regardless of the method chosen, timely payment is critical to maintain good standing with your loan and avoid potential late fees, which typically apply if a payment is not received within a grace period, often around 15 days after the due date.