TABLE OF CONTENTS

    Understanding your mortgage can be challenging, especially if you’re a first-time home buyer. Among the many details to consider, understanding when your first mortgage payment is due is crucial to budgeting and overall financial planning.

    If you’re wondering, “When is my first mortgage payment due,” you’ve come to the right place. In this article, we’ll discuss when your first mortgage payment is due after closing to help you plan and better understand the overall loan process. Keep reading to learn when you’ll make your first mortgage payment, how you can pay, and what you should do to prepare.

    KEY TAKEAWAYS

    • Your first mortgage payment is generally due on the first day of the month after a full 30 days have passed since your closing date. 
    • The exact date of your home’s closing and any early payments made can influence when your first mortgage payment is due. 
    • Homeowners can pay their mortgages using automated payments, online portals, or traditional checks.

    When Is My First Mortgage Payment Due After Closing?

    After the exhilarating experience of closing on a new home, many homeowners ask, “When is the first mortgage payment due?” The answer is straightforward — generally, the first mortgage payment is not due immediately after closing, but on the first day of the month after a full 30 days have passed. This is true for all home loans, including VA loans, conventional loans, non-QM loans, and so forth.

    This means that homeowners will be making their first mortgage payment more than 30 days from the closing date unless the home was closed at the very beginning of the month.

    For instance, let’s say you closed on your home on March 10. While you might anticipate an April payment, in reality, the first payment would be due on May 1. This means the first mortgage payment will encompass the interest accrued from March 10 to April 30, covering nearly two months. It’s a longer period than most anticipate, but understanding this schedule can help you prepare and manage your financial commitments better.

    Things That May Impact Your First Mortgage Payment

    Two key factors can impact when you make your first mortgage payment: your closing date and making early payments.

    Your closing date will ultimately determine when your first mortgage payment is due. Most mortgage providers require that the first payment falls on the first day of the month after a full 30 days have passed post-closing. Therefore, the exact day you close can significantly affect the time frame between closing and that first payment.

    For instance, if you close on January 5, your first payment is due on March 1. Conversely, if you close on January 29, that first payment will still be due on March 1, resulting in a shorter interval between closing and the first payment.

    Making early payments can also influence your first mortgage payment, whether you’re refinancing a mortgage or getting an entirely new one. Some enthusiastic homeowners, eager to get a jump start on repayment, choose to make payments before the official due date. While this can reduce the amount of interest accrued in the initial days of the loan, you should communicate with your lender before making any early payments.

    Communicating with your lender ensures that the payment is applied correctly and doesn’t push your next due date further into the future. Remember, early payment aims to reduce the loans’ principal faster, not postpone the next due date.

    How to Prepare for Your First Mortgage Payment

    While closing on a home is a celebratory moment, it’s just the beginning of homeownership. What comes next is the responsibility of meeting your monthly mortgage payments. The first monthly mortgage payment can be particularly daunting if you’re not prepared. However, you can ensure a seamless transition from home buyer to homeowner with the right planning and strategies. Follow these tips to prepare for that pivotal first mortgage payment:

    Making a budget

    Before you make your first mortgage payment, you should have a detailed understanding of your monthly financial obligations. Apart from your mortgage, this could mean utility bills, homeowners insurance, property taxes, routine maintenance costs, and so forth.

    A cardboard cutout of a home sits on top of a notepad and next to a pen and calculator.

    Homeownership can come with unexpected expenses like urgent repairs, so factor in a monthly allocation for emergencies or unforeseen costs to ensure you’re not caught off-guard. It’s recommended to set aside at least three months’ worth of living expenses to act as a buffer against unexpected events like job loss or health issues to ensure you can continue making mortgage payments.

    While setting a budget and sticking to it can seem challenging, it’s much simpler when you use the right tools. With the Griffin Gold app, you can use smart budgeting tools to track expenses and manage your finances. You can also use the app to monitor your credit, track home values, and much more.

    Being strategic with your closing date

    Your closing date significantly impacts when your first mortgage payment is due. As discussed, there’s usually a gap of more than 30 days between your closing date and the first payment. You can optimize this gap by being strategic with your closing date to suit your financial planning.

    For instance, if you get paid at the end of the month, consider closing around that time. This way, you’ll have more time to save for the mortgage payment due at the beginning of the month.

    Determining what payment method you’ll use to make your first mortgage payment

    Lenders offer various payment methods to make paying your monthly mortgage easier, such as automated, online, and traditional mail payments. Automated payments ensure timely payments and remove the stress of remembering due dates. However, before opting for this, ensure your account always has enough money to cover your payment.

    Most lenders also allow you to make online payments using digital portals. This flexible method allows you to make payments when it’s most convenient for you directly from your bank account.

    Believe it or not, many homeowners still pay their mortgage by mailing a check. However, if you go this route, you should always account for the time it takes for the mail to be delivered to avoid late payments.

    Maintaining an open line of communication with your lender to avoid surprises and ensure clarity

    Maintaining open communication with your lender is always wise, especially as you approach your first mortgage payment. Ensure you fully understand the amount due, the due date, payment instructions, payment instructions, and any potential fees associated with late payments.

    If you foresee difficulty paying, inform your lender as soon as possible. They might offer solutions that can help you better manage your finances.

    Additionally, mortgage terms, especially for adjustable rate mortgages (ARMs), might change over time. Communicating with your lender helps you stay updated on any changes that can affect your monthly payments.

    How Do I Make My First Mortgage Payment?

    You can make your first mortgage payment in several ways, each with its advantages. Keep in mind that each lender is different, so they should provide instructions on your mortgage statement for making timely payments. You can generally pay via automated payments, online portals, or traditional checks.

    • Automated payments: Many homeowners choose automatic bank deductions to make their first and subsequent mortgage payments. This method ensures you always remember to pay your mortgage for as long as you have it, and it helps build good credit. It’s also the most convenient option because it allows you to essentially set it and forget it.
    • Online portals: Lenders often have platforms where you can make direct payments. This method offers flexibility and instant confirmation of payment. While this is another convenient option, it’s not as convenient as automated payments because you’ll still need to remember your due date since the payment won’t automatically be taken out of your bank account every month.
    • Traditional checks: Some individuals prefer the tangibility of writing and mailing checks. If you choose to pay your mortgage via check, consider mail delivery times to ensure timely receipt by the lender.

    Whichever payment method you use, always keep records. If it’s an online payment, screenshot or print the confirmation page or save the confirmation email. For checks, keep a copy and note the check number and date sent. Keeping records can help you resolve any disputes that may arise later regarding your payments.

    Understand When Your First Mortgage Payment Is Due

    Your mortgage payment typically isn’t due immediately after closing. Instead, you have some flexibility in that your mortgage payment is due on the first of the month after a full 30 days have passed. In most cases, you have more than 30 days between closing and making your first mortgage payment.

    It’s essential to communicate with your lender, ensuring you’re fully aware of the payment amount and due date. Establishing open lines of communication can prevent surprises and provide clarity throughout the process.

    If you’re seeking a transparent and straightforward mortgage process, apply with Griffin Funding. We’re committed to providing clear communication and tailored mortgage solutions for first-time and seasoned home buyers. Apply for a mortgage online today.

    Frequently Asked Questions

    Why is my first mortgage payment so high?

    Your first mortgage payment may be higher than expected, primarily due to timing and interest. Depending on your closing date, you could be paying interest that has accrued from the day of closing to the end of that month.

    Additionally, if your lender established an escrow account for you, a portion of that payment may go into that account. Your escrow account is used to cover property taxes, homeowners insurance, and possibly other costs. The initial payment might be larger to help fund this account.

    You should always review your mortgage statement and discuss any uncertainties with your lender.

    What happens if I miss a mortgage payment?

    If you miss a mortgage payment, you should pay it as soon as possible. You may incur late fees, depending on if your lender offers a grace period and how long it is. A missed payment can also be reported to credit bureaus, which may negatively affect your credit score.

    If you continue to miss payments without communicating or negotiating with your lender, they can initiate the foreclosure process. This process, if completed, can result in the loss of your home.

    Keep in mind that even if you miss a payment, you'll still accrue interest. Depending on your mortgage terms, the missed interest might be added to your loan balance, increasing the total interest you'll pay over the life of the loan.

    Does it make a difference if I pay my mortgage early?

    Paying your mortgage early can have benefits and drawbacks. On the plus side, paying off your mortgage early can reduce the amount of interest you pay over the life of the loan. With more of your payment toward the principal, you'll also build equity in your home quickly.

    However, some mortgages come with penalties for paying off the loan early. If you want to pay off your mortgage before it's due, you should check your loan agreement to ensure you won't incur additional costs.

    What if my lender transfers my loan to another company?

    It is common that the lender will fund your loan and then transfer the servicing to another company. The new company will be responsible for sending you your monthly mortgage statement and collecting your monthly payments. In some cases, the lender may collect your first payment, and then the new servicer will collect the subsequent payments. If you are confused about who to send your payment to, please reach out to your point of contact at the lender so they can point you in the right direction.
    Bill Lyons

    Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 22 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 10 years in business.