When Is Your First Mortgage Payment Due?

First Payment

For a majority of homeowners the home mortgage payment is due on the 1st of each month. A mortgage payment is a payment in arrears and technically reflects the month prior. You have 15 days to make your payment from this due date. If you do not, the servicer of your mortgage will collect a late charge. If the payment is not made by the end of a month it is due in then the payment will be considered 30 days late and will be reported to the credit repositories. But your first due date after purchasing a home depends on the date that you close on the home. If you’re a first-time home buyer, it’s especially important to understand the breakdown of your payments.

Typically, when you close on your home purchase interest will be collected by the title company from the date of your closing to the end of that month. This is called prorated interest. Your first normal, full payment will commence on the 1st of the month 30+ days in the future.
An example will explain it better. You close on July 12th. The title company collects 20 days of interest representing interest from July 12th through July 31st. Your first schedule payment would be September 1st. Remember, your September 1st payment is covering the time period of August 1 – August 31.

Moving forward you will need to budget your mortgage payment every 1st of the month as you will occur the many normal additional expense of caring and maintaining a home. Also, automatic payment or withdrawal can be set up with your mortgage servicer at any time.

Certain factors such as escrow, property taxes, and homeowners’ insurance could make your monthly payments vary slightly, but in general, each payment will be the same amount. If you have any questions, you can always contact Hall Financial or your mortgage servicer.

For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.