When is my first mortgage payment due?

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Homebuyers often have questions about their new mortgage — namely, when do mortgage payments start? Is it when the loan is approved, when the loan closes or some other time? Let’s take a look.

When is the first mortgage payment due?

The due date for your first mortgage payment depends on the closing date, and it’s usually more than 30 days away from that date. You can estimate it by adding a month to the closing date and then figuring your payment will be due on the first day of the following month.

You can find your mortgage due date in the documents you receive at closing. Look for a document titled “First Payment Letter” that contains the details you’ll need to make the payment.

Can you change the due date of your mortgage payment?

Whether you can change your mortgage due date depends on the lender. Some lenders permit changes, especially if they are made during closing. Other lenders do not permit due date changes on home loans at all.

Check with your lender to learn its policy on mortgage due date changes.

How much is your first mortgage payment?

Your projected first mortgage payment amount will be listed in the closing disclosure you’ll receive at least three days before closing. The first and all following mortgage payments include the loan principal and interest, along with other items that the mortgage lender or servicer deposits into an escrow account, like taxes and homeowners insurance. The acronym PITI stands for these main components of your mortgage payment: principal, interest, taxes and insurance.

Calculating your PITI payment can help you before you close on a home, too — even while you’re still house- and mortgage-hunting. It can help you estimate how much house you can afford. By adding tax and insurance into your budget, on top of the principal and interest amount, you’ll get a better idea of a loan amount a lender may approve.

For example, say you bought a house for $350,000 at a 6.8 percent interest rate and put down 10 percent. Using Bankrate’s mortgage payment calculator, your monthly mortgage payment would be about $2,350, with around $2,054 going toward the principal and interest and the rest going toward property taxes and insurance.

Your mortgage’s first payment will largely go toward interest, based on your loan’s amortization schedule. While your first year of homeowner’s insurance premiums are often included with closing costs, you can expect to pay a monthly amount for annual property taxes and insurance costs. These expenses will be wrapped into your monthly mortgage payment.

If you have to pay mortgage insurance, that premium will also be included in your mortgage payment.

How to prepare for your first mortgage payment

Amid closing and moving costs, you may find that coming up with your first mortgage payment on a new home within the same pay period will be a financial squeeze. To help there, here are a few tips you can use before your first mortgage due date:

• Time your closing date strategically. If possible, schedule your closing to coincide with the end of your rental lease or in time with the sale of your existing home. This way, you can reduce the juggling of overlapping rent and mortgage payments.
• Trim back discretionary spending. Pare down on eating out, clothing purchases, entertainment costs and other non-essentials while you prioritize your new home and the expenses that go with it.
• Make a plan to replenish savings. If you take out a chunk of your savings for your home purchase, make a plan to replenish those funds as soon as you can once you settle the new home purchase.

Factors that impact your mortgage payment

Your mortgage due date will be determined by a few factors:

• Mortgage closing date –  You can typically expect your first mortgage payment one month after closing. If your loan closes late in the month, you may prepay the tail end of that month’s mortgage payment at closing. This will push your first full mortgage due date forward.
• Early payments – Making early payments may also impact your payment due date. Many banks allow you to make biweekly payments or early monthly payments toward your mortgage loan, though you may incur a fee. If you consistently make your payment three to seven days ahead of the mortgage due date for several months, you’ll be a month ahead on your payments.

How to make your first mortgage payment

You can choose one of many methods to pay your mortgage, including:

1. Auto-pay. Setting up recurring ACH (automated clearing house) payments, which involves the electronic transfer of funds from your checking or savings account to the mortgage lender, is an easy way to make mortgage payments on time. It can help you avoid missed payments, helping you build your credit score and avoid late fees. Depending on your goals, you can split the monthly payment into two to save on mortgage interest, pay more each month to pay off your mortgage early or sync payments with your paychecks to avoid overdrafts.
2. Online. Making payments on your lender’s portal or app is fast and reliable. If you plan to pay off your house early, paying online can be a convenient way to make extra principal payments when you have spare cash to put toward an early payoff.
3. By mail. If you prefer, you can send your monthly payment by mail using a personal check, cashier’s check or money order. Always include your mortgage account number on your check and allow enough time for delivery to avoid late charges.
4. By phone. Making a mortgage payment over the phone can be convenient, especially if you’re close to the due date and want to avoid incurring a late fee. Call the number on your mortgage statement and be ready to give the customer agent your mortgage account number and banking account information. Remember to ask the agent if there is a service charge for phone payments.

If you want to split payments or prepay your mortgage, ask your lender if it is permitted and how extra payments are applied. For example, if you want to pay biweekly, ask your lender if it charges a set-up fee, transaction fee or a prepayment penalty. Some lenders only apply your payments once a month, even if you’re submitting two or more payments each month, which could negate any benefits to the strategy.

You will need to specify that you want any extra payments or over-payments to be applied to the principal balance of the loan — the main way you reap the savings benefits. This is not a default for many lenders.

What happens if you miss a mortgage payment?

If you miss your mortgage payment, be sure to pay as soon as possible. While one late payment likely won’t result in your eviction, repeated delinquencies could harm your credit. You typically have a grace period of 15 to 30 days to pay — this depends on your lender — and if a payment is made during that time, you are less likely to incur a late fee charge.

If you change banks or bank accounts, let your mortgage lender know your new account information as soon as possible.

If you’re struggling to make your mortgage payments, don’t delay contacting your lender. While nothing is guaranteed, your lender may waive late fees or agree not to notify the credit bureaus of a late payment if you inform it of your situation. You may also qualify for a loan modification, repayment plan or a temporary payment reduction.