How to make your first mortgage payment

How to make your first mortgage payment

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When the time comes to to buy a house, many consumers use a mortgage to fulfill their dream of home ownership. Once you take out a mortgage, you will owe monthly payments to your lender until you repay the entire loan (including interest).

If you’re about to make your first mortgage payment, keep reading to find out when it’s due and common ways to make a payment.

Credible helps you compare mortgage rates from several lenders.

When is your first mortgage payment due?

Your first mortgage payment will generally be due approximately 30 days after the closing date. The first payment generally occurs at the beginning of the second month, after the closing of the mortgage.

For example, if you close your house towards the end of the month, such as October 28, you probably owe nothing for the first full month (in this case, November). Payment would instead be due in early December.

There’s a common misconception that you’re paying for the current month of your mortgage with that first payment, but that’s not true. you pay for the previous month. You cannot skip a mortgage payment by closing early in the month.

How to make your first mortgage payment

You can pay your mortgage in different ways, such as:

  • Pay online. More mortgage lenders allow you to make payments digitally through an online account.
  • Sign up for automatic payment. When you sign up for autopay with the lender, you ensure payments are deducted from your account on time.
  • Pay by phone. It may also be possible to make a payment over the phone by calling your lender and giving them your information, but not all lenders offer this option.
  • Mail a check. Mailing a check is usually an available payment option for mortgage borrowers, but it’s usually not the safest or fastest option.

How much will your first mortgage payment be?

The amount of your first mortgage payment varies depending on a few factors, such as:

  • Payment schedule – Some lenders allow you to payments every two weeks — half of your mortgage payment every two weeks — instead of one monthly payment. By making 26 payments every two weeks, you are effectively making an additional monthly payment over the course of a year. This can help you pay off your mortgage faster and save on interest charges.
  • Amount of your loan — The amount you have borrowed from your lender will naturally affect the amount of your mortgage payment. A larger loan amount means a more expensive monthly payment.
  • Interest rate – Mortgages come with fixed or variable interest rates. A fixed interest rate stays the same for the life of the loan, while a variable interest rate can change over time. If you have a variable interest rate, your first payment will depend on the interest rate in effect at that time. try negotiate a better mortgage rate before getting your loan.

Factors that make up your mortgage payment

Mortgage payments often consist of four different components:

  • Director – This is the amount you have borrowed and must be repaid to the lender.
  • Interest – Interest is basically the fee the mortgage lender charges you for borrowing money.
  • Taxes — You will have to pay property taxes on your home. The amount you pay depends on the state and county you live in and is usually rolled into your mortgage payment and held in an escrow account until the tax bill is due.
  • Insurance – This includes payments for your closing costs as well as premiums for your homeowners insurance, private mortgage insurance (PMI), flood insurance and legal insurance.


What happens if you miss a mortgage payment?

If you miss a mortgage payment, the lender may offer a one-time missed payment grace period before charging a late fee. But it’s not a guarantee, so it’s always a good idea to check with your lender beforehand and make mortgage payments on time. Your closing statement should contain information explaining the amount of the late fee for a missed payment.

If you miss multiple payments, it can really hurt your credit score because lenders have the ability to report late payments to credit bureaus when they are more than 30 days late.

Worse still, missing multiple payments can lead to foreclosure. After three consecutive months of missing payments, the lender may decide to go ahead with foreclosure as soon as 30 days later, or four months after you become delinquent.

You can easily compare mortgage rates from multiple lenders without affecting your credit when you use Credible.

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