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.
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.
The easiest way to pay your mortgage is to set up auto-pay so that your payment is automatically withdrawn from your bank account each month.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.
Here are a few tips:
When is your first mortgage payment due after closing?
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. In most cases, your first mortgage payment is due on the first day of the month following one full month after closing. 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 monthly mortgage payment typically includes four components: principal, interest, property taxes, and homeowners insurance, often referred to as PITI. 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.
When is a mortgage payment considered late?
A mortgage payment is typically considered late if it is not received by the end of the grace period set by your lender.- Due Date: Most mortgage payments are due on the first day of each month.
- Grace Period: Some lenders offer a grace period of 10 to 15 days after the due date. During this time, you can make your payment without incurring a late fee.
- Late Status: If your payment is not received by the end of the grace period. For example, by the 15th of the month, it is officially considered late. At this point, you may be charged a late fee, and the missed payment could be reported to credit bureaus if it remains unpaid for 30 days or more
Tips to Avoid Late Mortgage Payments and Plan Ahead:
If you’re late on your mortgage payment, it could negatively impact your credit, especially if it’s a reoccurring issue.Here are a few tips:
- Budget Accordingly: Your first mortgage payment sets the tone for your homeownership journey. Build it into your monthly budget early, along with future payments, so you’re financially prepared. Setting aside funds in advance helps you stay on track and avoid last-minute stress.
- Contact Your Lender: Not sure when your first mortgage payment is due? Reach out to your lender or mortgage servicer directly. They can clarify your payment schedule and help you avoid any confusion that could lead to missed payments or late fees.
- Automate Payments: Want to make sure you never miss a mortgage due date? Automate your monthly payments through your bank or lender’s online portal. It’s a simple way to stay consistent, protect your credit score, and avoid unnecessary penalties.