When is a First Mortgage Payment Due?

Curious about when a first mortgage payment is due? Typically, it’s on the first day of a full month after the closing date.

The closing date impacts how early you must send your first remittance. The earlier it is in the month, the later you will have to pay. The date depends on your agreement with the seller.

Mortgage payments comprise the principal, interest, taxes, and insurance. Lenders may charge you a penalty if you are overdue. It may also reflect on your credit report and downgrade your credit score. So, you must pay your monthly mortgage payments on time.

Computing your current income and expenses may give you an idea of how much mortgage you can afford. So, take out a loan that is within your budget after spending on other expenses.

The good news is that many people can afford the monthly fees. The challenge is the down payment, which is 3% to 20% of a home’s sale price. It’s another fee you have to pay upfront aside from the closing costs. But this amount does not have to come from your savings. Mortgage lenders allow you to get help from your family and down payment assistance programs. You’ll end up worrying about a little cash on the closing date and your first monthly mortgage payment.

The due date varies depending on when you close the loan, so read further to learn how timing is important. Details on the financial aid are also included below, so you won’t have much to worry about on the closing date.

Let’s have the budget for our first mortgage payment!

Express Takeaways

The first mortgage payment is due on the 1st day of the second month after the closing date.
Monthly mortgage payments may range from $1,100 to $2,600. It’s composed of principal, interest, taxes, and insurance.
Mortgage lenders may accept payments online, by mail, via a phone call, or in person.
Cutting costs on other items may help you save more for your home.
Mortgage lenders may have options and programs to help you with your payments.

When Are Mortgage Payments Due?

Mortgage payments are due on the 1st of every month, which a mortgage note may confirm. Before the due date, you will also receive a Mortgage Statement to verify when you must pay it.

When is a First Mortgage Payment Due?

Since mortgage payments are due on the 1st of every month, the first deadline depends on when you close a loan. If the closing date occurred on the first week of the month, you may not have to pay for the succeeding month yet. So, there is a chance to wait for another month before you have to pay your first mortgage. That’s a total of 1 ¾ months after the closing date.

But if you close in the last week of the month, it’s possible to only have 1 ¼ months of waiting. Because you did not have a chance to use the preceding weeks before the closing date.

The table below may help explain how deadlines for first mortgage payments are set.

Closing Date	Due Date for the First Mortgage Payment	Gap
January 28	March 1	Approx 1 month
February 3	April 1	Approx 1 month & 3 weeks

Confirm due dates with your mortgage lenders upon closing.

How Much is the First Mortgage Payment?

If your mortgage has a fixed interest rate, your first payment is the same as the succeeding payments. But, if it’s adjustable, the first mortgage may come lower or higher than the following bills. The average monthly mortgage payment ranges from $1,100 to $2,600.

What Makes Up Monthly Mortgage Payments?

The following basic items compose monthly mortgage payments:

Principal – the remaining balance you need to repay after putting down a payment
Interest – the cost you pay for borrowing money
Taxes – property taxes that local governments charge
Insurance – homeowners’ insurance

Mortgage lenders accept different payment methods for the total amount of the above.

What are the Methods of Paying Monthly Mortgages?

Mortgage lenders may have the following modes of payment.

Paying online through their website
Automatic withdrawals from your bank account
Paying by mail
Paying by phone
Paying in person through any of their branches

Ask your lender if any of the methods above incur any extra cost.

How Do You Save for Your First Mortgage Payment?

It takes better money habits and consistency to save for your mortgage payments. The following ways may help you spare a bit more dollars monthly for your home.

Changing to free or low-cost entertainment.
Canceling memberships and subscriptions you may not need.
Considering cooking at home instead of eating out.
Waiting a few days before buying an expensive item to see if you need it.

Homebuyerwallet.com also has details on the DPA programs you may apply for. The programs’ financial assistance may help you save more on your first mortgage.

What If You Miss Your First Mortgage Payment?

You have until the 15th of the month to pay before a mortgage lender charges you a penalty fee. If your payment is more than 30 days late, there is another set of fees. If you miss a mortgage payment, your home loan becomes past due, which reflects on your credit report. So, there is a chance to affect your credit score.

If you have problems paying, contact your lender for help. Companies may have repayment plans, loan modifications, and programs for your situation.

A company may ask you to submit papers to prove there is a hardship in paying. Then, they may ask you to write a letter that explains your situation of why you are unable to pay the monthly fees. A company may then review your credit report and tax details to confirm your details.

If none of the alternative options work and you are still unable to pay, foreclosure may happen.

Conclusion

The first mortgage payment is due on the 1st day of the second month after the closing date. The monthly fees may range from $1,100 to $2,600, composed of principal, interest, taxes, and insurance. Mortgage lenders may accept payments online, by mail, via a phone call, or in person. Cutting costs may help you save for your mortgage payments.

If you experience hardship and find it hard to pay on time, contact your lender. Companies may have alternative solutions and programs to help you. But as long as you stay within your budget, mortgage payments are manageable. Financial help is also available before and after closing your loan. So, why not start house hunting now on real estate websites and apply for a down payment assistance program? Let’s get through the house-buying stage to the first mortgage payment!

Article Sources

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