When Is Your First Mortgage Payment Due After Closing?

Understanding the financial aspects of your mortgage is a central focus for new homeowners. A key consideration is pinpointing when your first mortgage payment will be due. Specific guidelines and documents clarify this timeline.

Typical First Payment Timeline

The first mortgage payment is generally due on the first day of the second full month following your closing date. For instance, if you close on your home in April, your first payment would typically be due on June 1st. This common practice provides a period of adjustment before your regular monthly payments begin. Mortgage payments are made in arrears, meaning each payment covers the interest accrued during the previous month, not the current one.

During closing, you pay “prepaid interest” or “per diem interest” to cover the period from your closing date through the end of that month. For example, if you close on April 15th, you pay interest for April 15th through April 30th at closing. Your first mortgage payment on June 1st then covers the interest for the entire month of May.

Factors Influencing Your First Payment Date

While the “first of the second full month” is a general guideline, the exact timing of your first mortgage payment can be influenced by your specific closing date within a month. Closing earlier in the month often results in a longer gap before your first payment is due, potentially providing nearly two months of time. This extended period means you will pay more prepaid interest at closing to cover the additional days. Conversely, closing later in the month shortens the time between closing and your first payment. In this scenario, you pay less prepaid interest upfront, reducing the cash required at closing.

Lender policies can also play a role. Always refer to your specific loan documents for confirmation, but your initial payment must generally occur within 60 days of closing.

Locating Your Specific Due Date and Payment Information

To find the definitive due date for your first mortgage payment, you should consult your Closing Disclosure (CD). This document, which you receive at least three business days before closing, outlines the final terms of your loan, including payment details and costs. The CD provides a comprehensive breakdown of your loan terms, projected monthly payments, and fees.

You will also receive a welcome packet from your new loan servicer shortly after closing. The loan servicer is the company responsible for managing the day-to-day aspects of your mortgage, such as processing payments and handling escrow accounts, and may be different from your original lender. This packet contains crucial information, including your first payment due date, payment amount, and instructions on how to set up online payments or mail checks. If you have any questions, contacting your loan servicer directly is the most reliable way to obtain accurate information.

Initial Payment Components

The first mortgage payment covers a full month of principal and interest. Mortgage interest begins accumulating from the day your loan funds. Because mortgage payments are made in arrears, the first payment covers interest accumulated during the preceding full month.

Your first payment may also include components for your escrow account. An escrow account is established by your lender to collect funds for property taxes and homeowners insurance. At closing, you typically contribute an initial deposit to this account. This initial contribution, along with prepaid interest, is part of your closing costs.