When Will My First Mortgage Payment Be Due After Closing?

The timing of your first mortgage payment after closing is a common concern for new homeowners. While the period between closing and your initial payment may seem confusing, it follows a standard process. This article explains when your first mortgage payment is typically due and how to locate this information in your loan documents.

Typical First Payment Timing

Your first mortgage payment is generally not due in the month immediately following closing. Instead, it is usually scheduled for the first day of the second month after your home loan closes. For example, if you close on March 15th, your first payment would typically be due on May 1st.

This standard delay provides new homeowners with financial breathing room as they settle into their new residence. While this is the general pattern, your exact due date will be specified in your official loan documents.

How Mortgage Interest Accrues

Mortgage interest operates on an “in arrears” system, meaning your monthly payment covers interest accrued during the previous month. For instance, a payment made on October 1st typically covers interest accumulated throughout September.

Interest begins accruing on your loan balance from the day your loan closes. Because monthly payments cover a full month’s interest, and closing can occur on any day, lenders collect “per diem interest” at closing. This covers the daily interest from your closing date through the last day of that month.

Since this partial month’s interest is paid upfront at closing, your first full monthly payment covers interest for the next complete calendar month. This ensures all accrued interest is accounted for without overlap, delaying your first mortgage payment until the first day of the second month after closing.

Finding Your Specific Due Date

To pinpoint your exact first mortgage payment due date, refer to your official closing documents. The Promissory Note and the Closing Disclosure are two key documents that contain this information. These legal papers outline your loan’s specific terms and conditions, including payment schedules.

The Promissory Note serves as your formal promise to repay the loan, detailing the sum borrowed, interest rate, and the complete payment schedule, including your first payment date. The Closing Disclosure offers a comprehensive breakdown of all loan terms, fees, and costs, and lists your first payment due date.

If you have reviewed these documents and remain uncertain about your first payment date, contact your loan servicer directly. The loan servicer is the company responsible for collecting your monthly payments and managing your loan account. You can typically find their contact information on your monthly mortgage statement, payment coupon book, or within the Closing Disclosure.