Your first payment will generally be on the first day of the month following your first 30 days of ownership, but when you close can affect how much time you have between closing and that payment. While you can’t change your payment due date, you can always pay your mortgage early.
The Time Of The Month When You Close
The time of the month when you close affects how much time will pass between closing on your loan and the due date of your first payment. For instance, if you close on May 3, your first payment may not be due until July 1.
This doesn’t mean you’re skipping a payment. You’ll prepay the interest for May 3 – May 31 when you close. Planning your closing date at the beginning of the month means you must bring more money to the closing table. However, it gives you more time between closing and when you’ll make your first mortgage payment.
Paying Early
Most banks make mortgage payments due on the first of the month. Some lenders have built in flexibility, but if you don’t have that option, paying your mortgage early each month, or bi-weekly, can help you build in some flexibility.
For instance, if you can pay your mortgage 3 – 7 days earlier each month, you’ll be a month ahead on your payments within 4 – 8 months. Better yet, ask your lender if they allow bi-weekly payments. You’ll pay ½ your monthly mortgage payment every two weeks. This means you’ll make 13 full payments each year, ultimately pay much less interest and you’ll shorten your loan term.
Keep in mind that some mortgage companies charge you a fee if you pay your full loan amount ahead of schedule. More on this below.
