Congratulations on your decision to buy a home! As you prepare for the process, one of the first things you’ll need to know is when your mortgage payment is due. This article will outline the basics of mortgage payments and tell you when to expect your first one.
When is your first mortgage payment due after closing?
Your first mortgage payment is due on the first of each month, 30 days after your closing date. This way you are not charged interest for money that has already been given but is just waiting in an account earning less than 0%. Payments are habitually made in arrears, meaning that prior months’ worth goes towards paying off what’s owed at the present time.
The time of the month when we close has a huge impact on the time between closing and your first payment. You’re not skipping any payments, but you can pay them a little later if you close early.
How much is your first mortgage payment?
In most circumstances, your mortgage payment won’t change over time. Your first payment will be the same as your last. Remember that your mortgage payment follows an amortization schedule, which means your mortgage lender has a calendar breaking down how much of each payment will go towards principle, and how much towards interest. Your first payments are comprised of mostly paying the interest, with any extra you pay going toward the principle.
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 loan’s monthly installments—such as processing charges or interest charges if you’re not making on time payments!
What happens if you miss a payment?
If you miss your mortgage payment on the first day of each month, don’t panic! Most lenders offer a grace period around two weeks before they charge late fees. Make sure to pay as soon as possible, though, as fees later than the grace period can stack up quickly! Be upfront and honest with your lender—they want to see you succeed!
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 that it gets there on time! You can make payments online through an app, if your lender supports it. Remember that if you want to pay off your loan early, some lenders may charge a prepayment penalty.
We hope this article has helped answer some of your questions about when your first mortgage payment is due and how much it will be. If you have any other questions or would like to learn more about finding the best mortgage lender for you, don’t hesitate to contact us today.
