When is my first mortgage payment due?

Your inaugural mortgage payment is generally due on the first of the month, 30 days after you close the deal. You're paying for the previous month, not the current one. After spending so much money to buy the home, this is often a welcome reprieve.

Your Closing Date Counts

The date you close can influence the gap between closing and your first payment. No, you're not skipping a payment by closing early; the interest is rolled into your closing costs.

Exceptions Exist

In some cases, you can prepay interest and delay your first payment by a month, but it must occur within 60 days of closing. Be cautious of months with 31 days.

Payment Amount

For fixed-rate mortgages, your initial payment mirrors your regular monthly payment. Initially, most of it goes to interest, with a portion contributing to your principal balance.

Escrow and Fees

If you set it up, your monthly payment may also include funds for property taxes, insurance, and possible fees like processing or late-payment charges.

Penalties for Early Payment

Some lenders may impose prepayment penalties, aiming to maximize interest collection over the loan term. Make sure you understand the rules for your particular loan.

Missed Payments

Lenders often offer a grace period of about two weeks before late fees kick in if you miss a payment. Avoid late fees by setting up automatic payments.

Stay Communicative

If you encounter payment challenges, reach out to your lender promptly. They might have solutions to help you get back on track.

In a Nutshell

Your first mortgage payment typically aligns with the start of the month following 30 days in your new home. Closing earlier means more time but prepaying some interest. Understanding this timeline and your financial responsibilities sets you up for a smoother home-buying journey, especially if you secure mortgage approval early in the process.