When is the first mortgage payment on a house usually due?
We are closing march 1st the mortgage company said our first mortgage payment will be on May 1st but when we were planning on closing march 15 th the first payment was still said to be due on May 1st, why is that? And our mortgage is 1000 a month so is that what will be due in may 1st? Or will it be April and may mortgage payment just paid at once on may first.
- real estate guyLv 77 years agoBest Answer
It doesn't matter which day you settle on during the month. You can settle on the 1st, the 15, or the 31. So lets assume you settle on March 15.
On March 15 you will pay at settlement, interest on the loan from march 15 to march 31. Then your next payment wouldn't be due until May 1.
Why? When you pay rent, you are paying for the month in advance. So rent paid on March 1 is for the month of March. However, when you pay a loan, you are pay for last month. For example. When you pay our credit card bill, you are paying for the debt you used the month before - it's called in arrears. The same for a mortgage.
So your first payment would be due April 1 if you settle anytime in March.
- BillLv 77 years ago
The 1st payment is usually due after the next full month. If the property closed on February 28, it would be due on April 1 but since you are already going to be in the month of March when it closes it will be due May 1 since that is the next full month.
- falsi fiableLv 77 years ago
Your first mortgage payment is usually due 31 to 60 days after funding. Your first month or partial month interest is due at closing. If you close on March 15, your first payment should be due May 1.
- 7 years ago
That's the way it works. It will be just May on May 1