When Is Your First Mortgage Payment Due?
Andrew Dehan4-minute read
September 23, 2022
For most people, their mortgage payment is made on the first of the month, every month. But what about the first payment? Read on to learn what to expect from that first payment, as well as how your closing date coincides with when your first payment is due.
When Is Your First Mortgage Payment Due After Closing?
Your first mortgage payment will typically be due on the first of the month, one full month (30 days) after your closing date. Mortgage payments are paid in what are known as arrears, meaning that you will be making payments for the month prior rather than the current month.
The time of the month when you close can impact how much time will be between closing and your first payment. You’re not skipping a payment by closing early. The lender will still get their interest money, working it into your closing fees. There are some instances where you may be able to pre-pay the interest and have your first payment on the 2nd 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 that have 31 days in them.
January, March, May, July, August, October, and December all have 31 days in the month.
Example: You would not be able to have your first payment due on July 1st if you closed on May 1st because that is 61 days between the dates. You would have needed to close on May 2nd or after in order to have their first payment be July 1st.
However, keep in mind that closing at the beginning of May doesn't guarantee that your first payment won't be due until July.
How Much Is Your First Mortgage Payment?
In most circumstances, your first payment amount will not vary over time. If you continue to make that same payment, it will stay the same over the course of your mortgage.
Your mortgage follows an amortization schedule. For the entire term of your loan, your mortgage lender has a schedule breaking down how much of each payment is going toward principal and how much toward interest. Your first payments are comprised of mostly paying the interest, with any extra you pay going toward the principal.
Your mortgage payment will also include paying toward an escrow account, which collects money for insurance and taxes. Other fees can be included in your payment, such as processing fees and fees for late payment.
Factors That Might Affect Your First Mortgage Payment
Your first payment will be on the first of the month following your first 30 days of ownership, but when you close can change how much time you have between closing and that payment.
You may not be able to change your payment due date, but you can make your payment early, which can have a huge impact on how you pay off your mortgage.
The Time Of The Month When You Close
The time of the month when you close impacts how much time will be between closing and your first payment. For instance, if you close on May 3, your first payment may not be until July 1.
This doesn’t mean you’re skipping a payment. You’ll prepay the interest for May 3 – 31 when you close. Planning your closing date in the beginning of the month means you’ll need to bring more money to the closing table.
However, it gives you more time between closing and paying your first mortgage payment.
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 can help you build in your own flexibility.
For instance, if you can pay your mortgage 3 – 7 days earlier each month, within 4 – 8 months you’ll be a month ahead on your payments. While you’ll still have a payment due every month, paying early will help you pay down your principal. This means you’ll pay less interest over the term of the loan.
While this will help you build in a buffer for yourself, know that some mortgage companies will charge you a fee if you pay the full amount of your loan back too early. More on that below.
How To Make Your First Mortgage Payment
Making your mortgage payment is easier than ever. No longer do you need to write a check and mail it a week early so it gets to the lender on time. You can make your payments online or your lender may have an app, like the Rocket Mortgage® app for IOS and Android.
With your chosen payment method, you can make a one-time payment or sign up for auto-pay. With auto-pay, your payment will automatically be withdrawn from your account every month, eliminating the risk of a late mortgage payment.
Know that if you try to make a large payment to pay off your mortgage early, some mortgage lenders charge a prepayment penalty. This is because they want you to pay your loan off over time so they can collect interest. These penalties can vary from lender-to-lender and can really add up. Rocket Mortgage does not charge prepayment fees.
What Happens If You Miss A Payment?
If you miss your mortgage payment on the first day of the month, don’t fret. Most mortgage lenders offer a grace period of around 2 weeks before you’re charged a late fee. That means if you can’t make your payment on the first, but can on the eighth, your lender may not charge you a late fee and it may not affect your credit score.
After the 15th, though, is a different story. Late fees can add up quickly and being behind on your mortgage is terrible for your credit. Remember that your lender wants you to pay your mortgage. It’s detrimental for them and you if you can’t.
Being upfront with your lender when you get behind will work out the best for you. Contact them if you’re having trouble and need mortgage help. They may have options for you to help get back on track.
The Bottom Line
Since mortgages are paid in arrears and on the first of the month, your first mortgage payment comes at the start of the new month after you’ve lived at your home for 30 days.
This means that if you close on your house on May 15, your first payment is due July 1. By closing earlier in the month, you will have more time before your first payment, but you will 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 they start charging late fees. Know what’s expected of you and what to do if you’re having trouble paying your mortgage.
Check out more articles on the Rocket Mortgage Learning Center to learn more about managing your mortgage.
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