When Is Your First Mortgage Payment Due?

Most people make their mortgage payment on the first of the month or a few days before the actual due date. But what about the first payment on a new mortgage loan? Let’s walk through some important details on that initial payment and see how your closing date coincides with when your lender will expect your first payment.

When Is Your First Mortgage Payment Due After Closing?

The first mortgage payment is typically due on the first of the month, one full month (30 days) after the closing date. Monthly mortgage installments are paid in arrears, meaning you’ll be making payments for the month prior rather than the current month.

The time of the month when you close on your home can impact the amount of time between closing and your first payment. You’re not skipping a payment by closing early. The mortgage lender will still get their interest money by working it into your closing costs. 

There are some instances where you may be able to pre-pay the interest and have your first payment on the second month after closing. Your first payment must always be made within 60 days of closing. This means you’ll want to keep in mind the months with 31 days. January, March, May, July, August, October and December all have 31 days.

Here’s another way to consider this payment schedule: You wouldn’t be able to have your first mortgage payment due on July 1 if you closed on May 1, because that’s 61 days between the dates. You would need to close on May 2 or later for your first payment to be due July 1.

Keep in mind, however, that closing after May 1 doesn’t guarantee your first payment won’t be due until July.

How Much Is Your First Mortgage Payment?

For fixed-rate mortgages, your first payment amount will be the amount you pay each month over the course of your mortgage loan term.

Your mortgage follows what’s known as an amortization schedule. It works like this: For the entire term of your loan, your mortgage lender has a schedule breaking down how much of each payment goes toward principal and how much goes toward interest. Your first payments consist of mostly interest, with any extra you pay being allocated to your loan’s principal balance.

Your mortgage payment will also contain money to fund your escrow account, which most commonly collects money for homeowners insurance and property taxes. Fees, such as processing fees and late-payment fees, can also be included in your mortgage payment.

Knowing the amount of your first mortgage payment and when to pay it is an important way to prepare yourself for the financial obligations of purchasing and owning a house. If you receive initial mortgage approval before you start house hunting, you’ll have a better idea of the costs that come with home buying – from how much you can afford to pay for a house to the amount you’ll need for closing and your mortgage payments going forward.

Factors That Might Affect Your First Mortgage Payment

Your first payment will generally be on the first day of the month following your first 30 days of ownership, but when you close can affect how much time you have between closing and that payment.

While you can’t change your payment due date, you can always pay your mortgage early.

The Time Of The Month When You Close

The time of the month when you close affects how much time will pass between closing on your loan and the due date of your first payment. For instance, if you close on May 3, your first payment may not be due until July 1.

This doesn’t mean you’re skipping a payment. You’ll prepay the interest for May 3 – May 31 when you close. Planning your closing date at the beginning of the month means you must bring more money to the closing table. However, it gives you more time between closing and when you’ll make your first mortgage payment.

Paying Early

Most banks make mortgage payments due on the first of the month. Some lenders have built in flexibility, but if you don’t have that option, paying your mortgage early each month, or bi-weekly, can help you build in some flexibility.

For instance, if you can pay your mortgage 3 – 7 days earlier each month, you’ll be a month ahead on your payments within 4 – 8 months. Better yet, ask your lender if they allow bi-weekly payments. You’ll pay ½ your monthly mortgage payment every two weeks. This means you’ll make 13 full payments each year, ultimately pay much less interest and you’ll shorten your loan term.

Keep in mind that some mortgage companies charge you a fee if you pay your full loan amount ahead of schedule. More on this below.

How To Make Your First Mortgage Payment

Making your mortgage payment is easier than ever. In most cases, you won’t have to write a check and mail it a week early so you can be assured it reaches the lender on time. You can usually make your payments online through the lender’s website. Your lender might also have a mobile app, like the Rocket Mortgage® app for IOS and Android.

With your payment method, you can make a one-time payment or enroll in autopay. With autopay, your lender will automatically withdraw your payment from your bank account every month, eliminating the risk of a late mortgage payment. In fact, with Rocket Mortgage^®, setting up automatic payments is free and easy, and the best part is that you don’t have to pay for checks or stamps anymore.

If you try to make a large payment to pay off your mortgage early, some mortgage lenders charge a prepayment penalty. This happens because lenders want you to pay your loan off over the entire loan term so they can collect maximum interest. Rocket Mortgage doesn’t charge prepayment fees.

What Happens If You Miss A Payment?

If you miss your mortgage payment on the first day of the month, most mortgage lenders offer a grace period of around 2 weeks before charging you a late fee. For example, if you can’t make your payment on the first but can on the eighth, your lender may not charge you a late fee.

It’s important to stay on top of your mortgage payments or set up automatic payments. Late fees can add up quickly and getting behind on your mortgage can negatively impact your credit score.

Be upfront with your lender if you’re starting to fall behind on your mortgage payments. Contact them if you’re having trouble and need mortgage help, because they may have options to assist you in getting back on track.

The Bottom Line

Since mortgages are paid in arrears and on the first of the month, your first mortgage payment typically comes at the start of the new month after you’ve lived in your new home for 30 days.

This means that if you close on your house on May 25, your first payment is due July 1. By closing earlier in the month, you’ll have more time before your first payment, but you’ll need to prepay interest on the remaining days in that month.

While your payment is due on the first every month, most mortgage lenders offer some flexibility before charging late fees. Know what’s expected of you and what to do if you’re having trouble paying your mortgage.

Understanding when your first mortgage payment is due after closing – in addition to the costs that result from late payments – is a great way to prepare for the home-buying journey. If you’re approved for a mortgage at the jump, you’ll have an even greater understanding of your financial responsibilities when it’s time to close and move into your new house.

Are you ready to start the mortgage approval process? Apply online today to see what you qualify for.