When Is Your First Mortgage Payment Due After Closing

You’ll be charged prorated daily interest from March 15 through March 31 if your closing date is March 15. The interest collected at closing will cover the interest due on your mortgage for those last 16 days of March. Then your first mortgage payment will be due on May 1, and that payment will include the interest for April.

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Home Blog Uncategorized Your First Mortgage Payment Explained It can be confusing when taking out a mortgage, to know exactly how it works and when your payments are due. It is first important to understand that a mortgage is a type of amortisation.

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For instance, let’s say the closing date is June 15th and the first payment is due August 1. The buyer really wants a due date on the 25th of each month. Well, the buyer could make the first mortgage payment on July 25th and continue doing such every month.

With a mortgage, January’s payment is due in February, February’s payment is due in March and so on. Continuing with our June example by closing at the end of the month your first payment would not be due until August.

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If you close within the first 5 days of the month, the lender & you have the option of making your 1st payment due the 1st of the immediate month (i.e. closing on February 1st through the 5th would allow the option of having a 1st month’s payment of March 1st).

At closing. interest officially starts accruing on the closing date. Say you close your loan on the 15th day of May and your first payment is due on July the first. You have to pay for interest between May 15 and 31 at closing. So technically, you’re making your very first mortgage payment at the closing table.

After closing, your first payment is due one full month after the last day. "Typically, your first mortgage payment is due on the first of the following month after 30 days have passed," he says. "Say, for example, your mortgage closes on June 22.