Your first mortgage payment is typically due at the start of the second month after closing. This implies that your first payment is due in slightly more than a month if you close at the end of the month. However, if you close at the beginning of the month, you will owe extra at closing to cover the interest, and your first payment will be due in roughly two months.
Budgeting for the numerous costs that arise during the home-buying process, such as the down payment, moving costs, and inspection fees, is one of the most difficult aspects of the process. Additionally, you’ll need to plan your budget for your new mortgage payment, particularly if you anticipate having rent due at the same time as your first loan payment. When should you expect your first mortgage bill to come due?.
Generally speaking, the first day of the second month following the loan closing date is when your first mortgage payment is due. It’s crucial to know when to anticipate your first mortgage payment so that you can be financially prepared. Depending on when your mortgage closes, you may have one to two months before you owe it.
Congratulations on your new home! Now that you’ve closed on your mortgage, you’re probably wondering when your first payment is due. The answer depends on a few factors, including the date you closed and whether you’re making your payments in arrears or in advance.
When You’ll Make Your First Payment
In most cases, your first mortgage payment will be due on the first day of the second month after closing. For example, if you close on your mortgage on May 15th, your first payment will be due on July 1st.
This is because mortgage payments are typically made in arrears, meaning you’re paying for the previous month’s interest and principal So, if you close on May 15th, you’ll be responsible for the interest that accrued from May 15th to May 31st, and your first payment will cover the interest for June
However, there are a few exceptions to this rule. If you close on your mortgage at the very end of the month, your first payment may be due sooner. For example, if you close on May 31st, your first payment may be due on June 15th.
Additionally, some lenders may allow you to make your first payment in advance. If you’re worried about missing your first mortgage payment or would like to get ahead on your payments, this can be useful.
How to Make Your First Payment
The majority of lenders let you pay your first mortgage installment by mail or online. Usually, the lender’s website or your closing documents contain instructions on how to make your payment.
If you’re making your payment online, you’ll need to provide your bank account information and the amount you want to pay. If you’re making your payment by mail, you’ll need to send a check or money order to your lender’s address.
It’s important to make your first mortgage payment on time. If you’re late, you may be charged a late fee.
What Happens if You Can’t Make Your First Payment?
If you’re having trouble making your first mortgage payment, it’s important to contact your lender as soon as possible. They may be able to work with you to create a payment plan or offer other assistance.
It’s crucial to keep in mind that if you’re having trouble paying your mortgage, you have options. You might be able to short sell your house, sell it, or refinance your mortgage.
Tips for Making Your First Mortgage Payment
Here are a few tips for making your first mortgage payment:
- Make sure you have the money. This may seem obvious, but it’s important to make sure you have enough money in your bank account to cover your first payment.
- Set up automatic payments. This will help you avoid missing a payment.
- Make extra payments if you can. This will help you pay off your mortgage faster and save money on interest.
- Stay in contact with your lender. If you have any questions or concerns, don’t hesitate to contact your lender.
Additional Resources
- Experian: When Is My First Mortgage Payment Due After Closing?
- Rocket Mortgage: When Is Your First Mortgage Payment Due?
Frequently Asked Questions
- When is my first mortgage payment due if I close on the last day of the month?
Your first mortgage payment is normally due on the first day of the following month if you close on the last day of the month. For instance, your first payment is due on July 1st if you close on May 31st.
- Can I make my first mortgage payment in advance?
Yes, some lenders may allow you to make your first mortgage payment in advance. This can be helpful if you want to get ahead on your mortgage payments or if you’re worried about missing your first payment.
- What happens if I can’t make my first mortgage payment?
If you’re having trouble making your first mortgage payment, it’s important to contact your lender as soon as possible. They may be able to work with you to create a payment plan or offer other assistance.
Making your first mortgage payment is an important step in the homeownership process. By understanding when your payment is due and how to make it, you can avoid any late fees or other problems.
How Closing Dates Impact Payment Mortgage Payment Timing
The date selected as your loans closing date determines when your first mortgage payment is due. Furthermore, mortgage payments start at the beginning of the second month following closing, regardless of when in the month you close. This is because, in contrast to rent, mortgage payments are made in arrears, meaning that you pay for the previous month rather than the current month.
For instance, you would owe nothing at the end of the first full month (April) and your first payment would be due at the beginning of the second month (May 1) if you closed on a house at the end of the previous month, say on March 27. This gives you only about a month after closing before your first payment is due.
On the other hand, if you were to hold off and close on April 3, you would have no debt in April or May, meaning that your first mortgage payment would be due on June 1. You can get closer to having two months before your first payment is due by closing at the beginning of each month.
Your closing date affects not only the date of your first mortgage payment but also the amount you must set aside for housing payments during this period of transition.
Your budget may be strained if you close later than expected in a given month and have less time before your mortgage payment is due because you will probably also need money for other expenses like moving and furniture. Furthermore, if you’ve been renting, it might not be possible for you to avoid having to pay your mortgage and rent in the same month.
Instead, closing at the beginning of a month provides more financial cushion. Additionally, it allows you more time to break your lease and, ideally, avoid having to pay rent in the month that your first mortgage is due.
How Your First Mortgage Payment Affects Costs
Wondering if there is a cost to delaying your first mortgage payment? The answer is yes and no.
Your first payment amount will be the same regardless of when you close and whether it’s due one or two months after closing. What is impacted by a later first payment is your closing costs.
You are not truly missing a payment when your first mortgage payment is delayed; rather, it will be made closer to two months after closing rather than one. If your first payment is later, the interest must be paid in advance and included in your closing costs because you are responsible for the loan interest and property taxes as soon as you close.
This is the trade-off: delaying your first full mortgage payment will result in higher closing costs, which might be better if you’re including closing costs in your loan. In the event that your first mortgage payment isn’t due for two months, the date of closing simply determines whether you’ll pay the remaining balance at closing or one month later. Both options will impact your budget, just in different ways. You may be able to negotiate the closing date if one option is better for you.