Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE.” This week, we answer the question: When is my first mortgage payment due?
Typically, your monthly mortgage payment is due at the first of every month. However, your first payment is not be due until the first day of the next full month after your closing date. This means that depending on when during the month you close, your first payment might not be due that first following month!
Let’s say your closing day is in the middle of March. Because your first payment isn’t due until the next full month, your first payment will not be due April 1st, it will be due May 1st! But why?
This is because you pay a portion of your April payment at closing, including prepaid interest. Because interest is paid in arrears, April’s interest is not due until May! All-in-all, April’s payment would be accounted for at closing, and your first monthly payment will not be due until May 1st!
Everyone’s situation differs depending on your individual qualifications and mortgage needs, as well as loan program, so contact us or book your loan consultation today to get started on your homebuying journey with our team of mortgage experts you can trust.