When Is the First Mortgage Payment Due?

The homebuying process can be daunting and exhausting. Once you’ve found your mortgage and gone through the closing process, that headache is lifted. But then you have the next step of managing and keeping up on your mortgage payments. Instead of combing through your paperwork trying to make sense of it all, here’s what you need to know about making your first mortgage payment. 

Understanding Your First Mortgage Payment Due Date

Your first mortgage payment will be due between 30 and 60 days after the official closing date. Mortgage payments are typically due on the first of the month, and this can make it fairly simple to calculate when your first mortgage payment will be due. For example, if you close on Nov. 21, you can likely expect your first mortgage payment to be due on Jan. 1. 

Factors Affecting Your First Mortgage Payment Due Date

When is the first mortgage payment due? That depends on a few factors and is primarily based on your closing date. Here’s what you need to know. 

Closing Date

The first mortgage payment due date is largely based on your closing date. After your closing date, the clock will start ticking, so to speak. If your closing date is earlier in the month, you will likely have more time between closing and the first payment due date as opposed to a closing date later in the month. This is because of the structure of the payment schedule. 

Early Payments

Some lenders allow for early payments, which can also impact the first mortgage payment due date. If the lender allows early payments, you can make biweekly payments on your mortgage. In some cases, the lender may charge an early payment fee, which is something to be aware of if you are considering using this payment method. 

How Much Is Your First Mortgage Payment?

The amount due on your first mortgage payment due date depends on several factors. This includes the loan amount, interest rate and terms of the loan. Mortgages are amortized, meaning that the balance that you need to pay is divided into equal payments that last throughout the loan term. Because of this, your first mortgage payment should not be much different than future mortgage payment amounts. 

The exception to this is if you have an adjustable-rate mortgage. With an adjustable-rate mortgage, the interest rate you are paying at the beginning may be drastically different from the interest rate you pay years down the line. Either way, when you close on your home, you should have a good idea of how much your monthly mortgage payments will be for the foreseeable future. 

Loan Term

Your loan term will also make a big impact on your monthly mortgage payments. Most people choose between a 15-year or a 30-year mortgage. Say your total mortgage amount is $250,000. If you’re paying it off over 15 years, that is $1,389 per month in principal alone. But when you pay that amount off over 30 years, it breaks down to $694 per month for the principal balance. 

Principal Amount and Interest

With each mortgage payment, you’ll be paying for more than just your principal, so it’s important to consider that as well. The mortgage interest is a major part of your monthly payments, and at the beginning of the mortgage, most of the monthly payment goes toward interest. To understand how much you’ll be paying toward interest, look at your mortgage annual percentage rate (APR). This is the percentage of your loan amount that will be paid in interest per year. So, for that $250,000 loan, if you have a fixed APR of 3%, you can expect to pay $7,500 in interest each year. 

Escrow Account

Your lender may require you to have an escrow account as well. This account is managed by your lender and designed to help you set aside part of your monthly payments for property taxes and your homeowner’s insurance premium. If your lender manages an escrow account for you, it will handle making property tax and insurance premium payments on your behalf when they’re due. 

PMI and HOA Fees

Other costs that may be part of your total mortgage payment are private mortgage insurance (PMI) and homeowner’s association (HOA) fees. If you made a down payment of less than 20% on the home, your lender will likely require you to have PMI, which is an insurance policy that helps protect the lender if you default on your mortgage. If you purchased a home or condo that is part of an HOA, you can expect to have to pay an HOA fee. 

How to Make Your First Mortgage Payment

By the time you close on your home, your mortgage lender will have provided you with instructions on how to make your mortgage payments. Your first mortgage payment will be paid in the same way as any other mortgage payment. Some common payment options include: 

Setting Up Automatic Payments

Many mortgage lenders offer the option to set up automatic mortgage payments. With this option, you’ll connect your bank account and give the lender permission to pull your payment automatically each month. This will usually be set up for the first of the month. Automatic payments can help you avoid missing a payment or making late payments. But even with automatic payments, you should check your account regularly to make sure that your payments are going through. Some lenders may also offer a slight discount for setting up automatic payments.

Mailing a Check

These days, mailing a check is not as commonly used as a payment method, but some lenders still offer the option. When mailing a check, you have to consider the fact that it takes time for the payment to be delivered to the lender and for it to be processed. 

Making an Online Payment

You can make mortgage payments online even if you decide not to set up automatic payments. When making online payments, you can visit the mortgage lender or servicer’s website and use the payment portal. You’ll most likely have to use your bank account to make online payments. Most lenders do not accept credit card payments for mortgages, and if they do, there is often a service fee associated with it. 

Calling Customer Service

If you have questions about your payment or don’t want to use online payments, most lenders will also accept mortgage payments over the phone. Before calling, be sure to have your mortgage account number and banking account information available to share with the customer service representative. 

What Happens if You Miss Your First Payment?

There can be negative consequences if you miss your first mortgage payment. Most lenders offer a grace period for their loans, meaning that there is a period after the due date that the lender will still accept your payment without charging late fees. The grace period usually is not more than a few days. After the grace period ends, the lender will charge a late fee that can be equal to around 5% of the overdue balance. 

If you miss your first mortgage payment by 30 days or more, the missed payment will be reported to the credit bureaus. This can hurt your credit score and will also mean that your loan is considered delinquent. After a few months, if you still have not made mortgage payments, your lender will likely begin the foreclosure process. 

How to Prepare For and Manage Your First Mortgage Payment

Now that you’re familiar with how the first mortgage payment works, it’s time to set up your plan. You should consider how you want to make your monthly mortgage payments and set up a system that will help you stay on top of payments every month. It’s also a good idea to check over your budget and make sure your payday will line up correctly if you have automatic payments set up. Don’t be afraid to reach out to your lender if you have questions about making your mortgage payments. 

Frequently Asked Questions