When Is My First Mortgage Payment Due?

When Is My First Mortgage Payment Due?

Buying a home is an exciting milestone, but it also comes with financial responsibilities, including making mortgage payments. One of the crucial aspects of managing your new mortgage is understanding when your first payment is due. Let’s dive into the details of when your first mortgage payment is typically expected and what factors can influence this date.

When is the first payment due?

Your mortgage agreement and closing documents will specify your first payment due date. It's essential to carefully review these documents to understand your payment schedule accurately. Typically, your first mortgage payment will be due on the first of the month, one full month after the closing date. For example, if you closed on your home on September 14th, then your first payment will likely be due on November 1st. This is because mortgage payments are made in arrears, or made for the previous month and not the current one. The first payment must be paid within 60 days of closing, so you will want to pay extra attention to months with 31 days.  

An early-month closing could help to provide some extra time between closing and your first mortgage payment, which could be beneficial if you are still renting your current home or need funds for your move. However, you should then plan to have more cash at closing to cover any prepaid interest.

How much is my first payment and how do I pay it?

Your mortgage payment includes the principal, interest, taxes and insurance. Your amortization schedule determines how much of each payment goes towards the principal and how much goes towards the interest. Most of your early payments will be mainly interest. 

The easiest way to pay your mortgage is to set up auto-pay so that your payment is automatically withdrawn from your bank account each month. Speak with your loan officer directly about other options of payment such as one-time payments by mail, card or phone, as these vary by lender. Keep in mind that alternate methods of payment could incur additional fees and/or delay your payment’s arrival.

How to plan ahead:

If you’re late on your mortgage payment, it could negatively impact your credit, especially if it’s a reoccurring issue. While some lenders offer a short grace period, allowing you to make your first payment a few days after the due date without incurring late fees, understanding your first mortgage payment due date is essential for budgeting and financial planning. 

Here are a few tips:
  • Budget Accordingly: Plan for your first payment and subsequent monthly payments in your budget. Set aside funds to ensure you can comfortably meet your financial obligations.
  • Contact Your Lender: If you have any uncertainties about your first payment due date, don't hesitate to reach out to your lender, or the company that is servicing your mortgage, for clarification.
  • Automate Payments: Setting up automatic payments can help ensure you never miss a due date and avoid late fees.
Knowing when your first mortgage payment is due is a fundamental aspect of homeownership. By understanding the factors that influence this date and planning ahead, you can navigate the financial aspects of owning a home with confidence. Always refer to your loan agreement and communicate with your lender to stay informed about your payment obligations.