When Is My First Mortgage Payment Due?

Let’s break it down with examples:

• Close in early January = First payment March 1st
• Close in late January = First payment March 1st
• Close in early February = First payment April 1st
• Close in late February = First payment April 1st

Homeowners will receive a payment letter detailing the first mortgage payment due date and instructions for making the payment.

The gap exists because:

• Interest is paid in arrears (for the previous month)
• You pay prepaid interest at closing
• Mortgage payments cover the previous month’s mortgage interest
• This system helps avoid paying double interest

At closing, you’ll pay:

• Prepaid interest (from closing date to month end)
• Property taxes (if due soon)
• Homeowners insurance
• Any mortgage insurance required, including private mortgage insurance (PMI) if your down payment is less than 20%
• Other closing costs

1. The monthly mortgage payment includes several components:
2. Principal (pays down your loan)
3. Interest (cost of borrowing)
4. Taxes (if you have an escrow account)
5. Insurance (if you have an escrow account)

The mortgage lender plays a crucial role in setting up and managing the monthly mortgage payment, including handling payment difficulties and offering options like forbearance and loan modifications.

Remember these key points:

• Payments are due on the 1st
• Grace period usually until the 15th
• Set up automatic payments
• Set up automatic payments to avoid late payment fees
• Keep proof of payment
• Watch for your first statement

We help you understand:

• Payment schedules
• Payment options
• Automatic payment setup

Understanding your first mortgage payment timing helps you plan better. Remember, your DSLD Mortgage team is here to help you set up payments and answer any questions about your new mortgage.