Important points
The first mortgage payment is usually due on the first of the month, one full month (30 days) after the closing date. Add 30 days to the closing date to find the 1st of the next month. For example, if you complete a transaction on June 15th, your first payment may be due on August 1st.
For first-time home buyers, there are many dates and payments to keep track of before closing. After you become a homeowner, one thing you need to plan for is your mortgage payment. But how do you know when your first mortgage payment is due after closing?
This Redfin article outlines how to find out when your first mortgage payment is due and how much. Whether you’re buying a home in Columbus, Ohio or a condo in Chicago, Illinois, here’s what you need to know before paying your first mortgage.
When is the first mortgage payment due?
The closing date determines when your first mortgage payment is due. In most cases, the deadline is the 1st of the month following the closing date. One way to estimate the closing date is to add 30 days to the closing date to get the next month.
For example, if your deadline is June 15th, add 30 days to make it July 15th. The next full month is August, so you should expect your mortgage payment to be due around then. Each financial institution is different, so be sure to check the deadline documents as they must also specify the date of the first payment.
What is the first mortgage payment after closing?
The first mortgage payment may be included in the Closing Disclosure that is received before the Closing Date. Mortgage payments typically include:
Loan principal and interest taxes (if included) Homeowner’s insurance (if included) Private mortgage insurance (PMI) (if applicable)
A mortgage payment typically includes four parts: principal, interest, taxes, and insurance, abbreviated as PITI. If your down payment is small, your payment may also include PMI. Some may include HOA fees. However, many HOA fees are paid directly to the board rather than included in your mortgage payment.
Why is my first payment higher than expected?
First mortgage payments are typically higher because there is a longer period between the closing of the mortgage and the first scheduled payment. This is primarily due to increased interest. Most financial institutions charge interest on a per diem (per day) basis, which can result in higher initial payment costs.
Some lenders include this additional interest in the amount you pay at closing, while others roll it over to your first mortgage payment.
For example, you might pay interest for 45 days a month instead of just 30. In most cases, the principal and interest remain the same over the life of the loan. Insurance premiums and property taxes can change from year to year, which can affect your payments.
Can I change my mortgage payment deadline?
Depending on your financial institution, you may be able to choose the date on which you pay your mortgage. If possible, we recommend choosing the same date you receive your paycheck.
Some lenders may only offer two options: beginning of the month and mid-month. For example, you may be able to select either the 1st or 15th of the month. Be sure to talk to your lender to find out what your payment options are.
3 steps to pay your mortgage
1. Open an account with a mortgage servicer
You will need to set up an account to pay your mortgage, which is usually done through a mortgage servicer. A mortgage servicer may or may not be a lender. Lenders often “sell” mortgages to mortgage servicers. If this happens, you’ll be notified so you can set up your account for future payments.
2. Decide on your mortgage payment method
Most homeowners have automatic payments set up. This is the easiest way to make on-time payments. Some financial institutions may offer incentives or discounts for using autopay. You can also pay manually online, by check, or over the phone, but if you use these options, you must try to pay on time. It is important to check with your financial institution in advance, as they may have a preferred payment method.
3. Make sure you have sufficient funds
Buying a home comes with many unexpected expenses, so it’s important to have enough money to cover your first few mortgage payments. Many financial institutions don’t accept credit card payments, so you’ll need to make sure you have adequate funds in your checking or savings account to cover your mortgage.
What happens if I miss my mortgage payments?
The first step is to pay off your mortgage as soon as possible. Many lenders offer a grace period, typically 10 to 15 days, before charging late fees or other penalties. If you make a payment after the grace period, your payment will be considered late.
If you expect to be late on your mortgage payments, it’s best to talk to your lender in advance, as they may be able to change your payment schedule. Repeated missed or late payments can affect your credit score, affect your ability to get another mortgage, and in the worst case scenario, lead to foreclosure.
Frequently asked questions about mortgage payments
What does my first mortgage payment include?
You typically pay any additional interest that accrues between the closing date and the next mortgage payment, plus PITI for the next 30 days. After this first payment, your mortgage will consist only of last month’s PITI.
Where do I pay my mortgage?
You can pay online through your lender or servicer’s website, by sending a check, or over the phone.
Skip your mortgage payment after closing?
Strictly speaking, you don’t skip your mortgage payment after closing, but it may seem that way. You won’t pay until the next full month, so there could be months in between when your mortgage payment isn’t due. However, you will pay additional money at closing or on your first payment to make up the difference.
Do I pay HOA fees with my mortgage?
Paying HOA fees with your mortgage is not common, but it can happen. Many HOAs require direct payment. In some cases, such as new developments, HOA fees may be included in your mortgage payment.
