When Is Your First Mortgage Payment Due After Closing?
Once you close on your home, setting up your first and future mortgage payments is next on your to-do list. While it seems like a simple task, there are a few things you’ll need to know—like when your first mortgage payment is due, how to set up the following payments and avoid late payment fees.
When Is My First Mortgage Payment Due?
Your first payment date is set during closing. You can find it on your First Payment Letter along with payment instructions. The payment date is generally on the first of the month after a full month past the closing date.
So, whether you close on September 2 or September 15, your payment would be due on November 1. However, interest is still being charged for the first month that you own the home, so the closer you close to the end of the month, the less interest you owe.
Keep in mind that your first payment must be made no more than 60 days after your closing date—so pay close attention to months that have 31 days instead of 30. For example, if you closed on March 1, your first payment would have to come before May 1 because there are 31 days in March. To make your first payment on May 1, you’d have to close on March 2 or later.
How Much Will My Mortgage Payment Be?
Your first mortgage payment will be the same as your future monthly mortgage payments. For example, if your mortgage is $350,000 with a 20% downpayment and a 6% interest rate, your monthly mortgage payment would be about $1,678, before other costs like taxes and insurance.
Sometimes a lender will let you customize your payment plan after the first payment. For instance, some lenders might allow you to make biweekly half payments—which could help you pay off your mortgage sooner because you’ll make the equivalent of one extra payment per year that goes towards paying down your principal. Ask your lender what options you have for future payments—whether it’s a different due date or a new payment plan.
It’s critical to talk with your lender ahead of time to make sure your extra payment goes toward the principal loan balance.
How to Make Your First Mortgage Payment
The method for making your mortgage payment is generally up to you. But here are the options you can consider:
- Pay online. You can pay online via electronic check or simply by logging into your account and having it debit your connected account or before your due date.
- Enroll in autopay. You can also choose to set up automatic payments online with the lender, so you won’t miss any payments.
- Pay over the phone. You can always call your lender to make payments over the phone. Just make sure your lender has this as an option.
- Send a check by mail. This should be your last consideration when paying any bill. We don’t recommend making payments via check by mail because there aren’t many protections if your check is stolen and cashed.
Tip: If you’re working with a special repayment plan, such as biweekly payments, you’ll want to set that up directly with the lender to make sure everything is credited appropriately.
Frequently Asked Questions (FAQs)
What happens if my bank rejects the payment?
If your bank rejects your payment, the payment won’t count. The payment could be rejected because your lender doesn’t work with that bank, you had insufficient funds or another bank error. Whatever the reason, you’ll need to correct it with a new payment if this happens.
When is a mortgage payment considered late?
A mortgage payment is typically considered late 15 days after the due date. However, your specific lender is the one who makes that decision, so read your paperwork carefully and ask customer service in case any rules have changed.
What if you miss a mortgage payment?
Missing one payment won’t cause you to lose your home, but it could hurt your credit score. There are a handful of reasons why you might miss a payment:
- Your automatic payment wasn’t set up correctly
- You changed bank accounts
- The mortgage company accidentally didn’t post your payment
- You forgot to make the payment
- You didn’t have sufficient funds
If you can’t afford your mortgage payment, talk to your lender about submitting a partial payment or some other arrangement until your finances return to normal.
Do closing costs include your first mortgage payment?
Closing costs don’t include your first mortgage payment. However, the closing documents will detail when the payment is due.