When Is Your First Mortgage Payment Due?

There's so much to learn about mortgages, especially if you're a first-time home buyer. For example, you might be wondering when the first mortgage payment is due. Here, we'll cover:

• When your first payment is due
• How to pay it and how much it will be
• If you can make the payment before the due date
• The benefits of paying your mortgage off early

When your first mortgage payment is due

Your first mortgage payment is generally due on the first day of the month following the first 30 days after you've closed on your home.

Here's an example:

You could close earlier in the month, but you would need to pay prepaid interest on the remaining days in that month. We'll cover this in more detail below.

How to make your first mortgage payment

There are several ways to make your first mortgage payment:

• Autopay: The mortgage company takes the payment from your bank account on the same day each month, and you don't have to worry about late payments or fees.
• Mail a check: You can use the address provided by your mortgage company.
• Drop it off: If you live near your lender's office, they may let you drop off payment each month.

How much your first mortgage payment will be

To find out how much your first mortgage payment will be, check your closing disclosure form. You'll get this form at least three days before closing, and it will say how much your monthly mortgage payment will be.

If you have a fixed-rate mortgage, your first mortgage payment will be the same as each subsequent payment throughout the life of the mortgage. The only caveat is that your payment may be adjusted to accommodate higher property taxes or homeowners insurance, both of which are paid from your escrow account.

If you have a variable-rate loan, your first mortgage payment will be the amount listed on the closing disclosure form.

Learn more: Closing Disclosure: What It Is, How It Works, and How to Read One

What you'll pay instead of a mortgage payment at closing

Though you won't make a mortgage payment at closing, you will be responsible for paying prepaid interest. Prepaid interest is the daily interest you're charged between the time you close and the time you make your first mortgage payment. Mortgage interest starts accruing on your loan the day you close, and it doesn't stop accruing until you pay the mortgage off in full.

The amount of prepaid interest you pay depends on the day the mortgage closing occurs. Let's say you close on Jan. 10. The daily interest is multiplied by the number of days left in the month. In this case, you'd owe 21 days' worth of prepaid interest, from Jan. 10 to Jan. 31.

At closing, you're likely to also pay:

• A down payment
• Escrow account funds
• Closing costs

Read more: First-Time Home Buyer Tips

When is a payment late?

Many mortgage companies consider a payment made after the 10th day of the month late, and that's when they start to tack on late fees. While mortgage payments are due on the first of each month, most mortgage lenders offer a grace period of some kind before they begin charging late fees.

What to do if you can't make a mortgage payment

The first thing to do is contact your mortgage lender and let them know what's going on. Find out if there are any options available to you. For example, if you're in the hospital or have lost your job, see if the lender is willing to offer mortgage forbearance for a few months.

If you've had your mortgage for several years and have a record of making all payments on time, the lender may be more open to working with you.

If you're having trouble coming up with the payment, your lender may be willing to:

• Lower your interest rate
• Waive their standard late fee
• Drop your private mortgage insurance (if you've built enough equity)

The best mortgage lenders put customer service first, and that means helping a homeowner stay atop their monthly mortgage payment.

What to do if you want to save money over the long run

You have several options for saving money on your mortgage.

Pay it off early

Let's say you have a 30-year mortgage. You can take the entire 30 years to pay the loan in full, or you can pay the mortgage off early. Paying it off early can save you thousands over the life of the loan. For example, here's the difference between paying off a $320,000 mortgage with a 4.25% APR in 30 years and paying it off early in 20 years.

While you'll pay an extra $407 per month, paying the loan off early shaves more than $91,000 off the total amount of interest paid.

Whether you're just buying a home or you've already lived there for years, it may be worth it to you to use our mortgage calculator to learn how much you can save.

Refinance the mortgage loan

Another way to save money is to keep your eye on the market, and if you intend to stay in a home for years to come, refinance the mortgage to a lower interest rate when the opportunity presents itself. The average cost of refinancing is around $3,400 according to ClosingCorp, but it can pay for itself rather quickly. For example, if refinancing drops your payment by $300 per month, it will take less than a year to make up the amount spent to refinance. And if you plan to live in the house for years, the savings will quickly add up.

Read more: How to Pay Off Your Mortgage Early

Stay on top of everyday maintenance issues

Most things that go wrong with a home start out as minor problems. For example, mold in the basement began with an inch of mold. A leak under the kitchen sink started with a small drip. If you take care of minor problems as they arise, they don't have a chance to grow into the significant issues that require a professional to repair.

An idea for the money you didn't have to spend

If you're surprised to learn that you'll have anywhere from 30 to 60 days to make your first mortgage payment, why not use the money you might save to start an emergency savings account? Funds from the account can be used whenever you have a maintenance issue that needs to be addressed. If your dishwasher leaks, gutters need to be cleaned, or the house's exterior needs power washed, you'll have the money to get the job done.

Still have questions?

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