💰 Your First Mortgage Payment

When is my first mortgage payment due?

Typically, your first mortgage payment is due on the first day of the month following a full 30 days after your closing date. For example, if you close on March 12, your first payment would be due on May 1. This schedule might seem like you’re skipping a payment, but you’re actually paying in arrears—covering the previous month’s interest. 

Understanding Per Diem Interest

If your closing date doesn’t align perfectly with the start of a month, you may encounter per diem interest. This is the interest accrued between your closing date and the end of that month. Lenders often require this amount to be paid at closing, ensuring that your first regular payment aligns with the standard schedule. 

Components of Your Mortgage Payment

Your monthly mortgage payment isn’t just about repaying the loan principal. It typically includes:

  • Principal: The amount borrowed.

  • Interest: The cost of borrowing the principal.

  • Taxes: Property taxes assessed by your local government.

  • Insurance: Homeowners insurance premiums.

These components are often abbreviated as PITI. Depending on your loan type and down payment, you might also have to pay for mortgage insurance.

Preparing for Your First Payment

To ensure a smooth transition into homeownership:

  • Review Your Closing Disclosure: This document outlines your payment schedule and amounts.

  • Set Up Autopay: Automating payments can help avoid late fees.

  • Budget Accordingly: Account for all components of your payment, including taxes and insurance.

What If You Miss a Payment?

Life happens, and sometimes payments are missed. Most lenders offer a grace period of 15 days. After that, late fees may apply, and missed payments can impact your credit score. If you’re facing financial difficulties, it’s crucial to contact your lender promptly to discuss possible solutions. 

Conclusion

Understanding when your first mortgage payment is due and what it entails is essential for financial planning. By staying informed and proactive, you can navigate the early stages of homeownership with confidence.

Sources: Bankrate

john hite