When Is Your First Mortgage Payment Due? 2025 Guide for Homebuyers
You finally did it—you closed on your home and got the keys. But now you’re asking: “When is my first mortgage payment due?”
The answer isn’t always what people expect. Many new homeowners are surprised to learn that their first mortgage payment usually isn’t due right away. In fact, it often comes more than a month after closing.
At Gustan Cho Associates, we’re here to break down exactly how your first mortgage payment works, when it’s due, and what you can do to plan ahead so you don’t feel caught off guard.
Let’s walk through it step-by-step so you’re fully prepared.
When Is the First Mortgage Payment Due After Closing?
Your first mortgage payment usually isn’t due until the first day of the second month after you close. So, if you close on June 15, you’ll need to make your first payment on August 1. It’s the same thing if you close on September 2; your payment will be due on November 1.
What’s the reason for the wait? This is because mortgage payments are made in arrears, meaning you are actually covering the interest for the previous month, unlike rent, where you pay in advance for the upcoming month.
Wondering When Your First Mortgage Payment Is Due?
Understand the timeline for your first payment and how to plan for it.
What Does Your First Mortgage Payment Include?
Your first mortgage payment covers a few things. It includes interest from the previous month and some of the principal, and if you have an escrow account, it also covers your taxes and insurance.
Even though your first mortgage payment might not be due until 30–60 days after closing, you’re still being charged interest starting from the day you sign your closing documents. That’s where prepaid interest comes in (more on that below).
Do You Pay a Mortgage at Closing?
You don’t make a full mortgage payment at closing, but pay prepaid interest.
Prepaid interest is the amount of interest from your closing date to the end of that month. So if you close on August 10, you’ll prepay August 10 through August 31 at closing. That way, your first mortgage payment on October 1 will cover the whole month of September.
How Your Closing Date Affects Your First Mortgage Payment
Yes, you can choose a closing date to manage cash flow.
Here’s how it works:
| Closing Date | Interest Paid at Closing | First Payment Due |
| August 2 | 29 days of interest | October 1 |
| August 29 | 2 days of interest | October 1 |
If you close early in the month, you pay more interest upfront, but you get nearly 2 months before your first mortgage payment is due. If you close late in the month, you pay less upfront, but your first payment is still due on the same date.
Pro Tip from Gustan Cho Associates: If you’re tight on funds at closing, a late-month closing can help reduce your upfront costs. But if you want more time before your first payment, an early-month closing gives you breathing room.
Why Mortgage Payments Are Paid in Arrears
Unlike rent (which you pay at the beginning of the month), mortgage payments are made after the month has passed. This is called paying interest in arrears.
So if your first mortgage payment is due October 1, you’re paying for:
- September interest
- A portion of your loan’s principal
- Escrowed taxes and insurance, if applicable
That’s why your closing date matters—it affects how much prepaid interest you need to pay upfront.
Do You Skip a Payment When You Refinance?
Short answer: No, you don’t skip anything.
Some lenders will tell you you’re “skipping a mortgage payment” when refinancing. But what actually happens is:
- Your new lender pays off your old loan, including all interest due until the refinance date.
- You prepay interest when closing on the new loan.
- Your first payment on the new loan doesn’t start until the following whole month.
So while it might look like you skipped a payment, you’re just shifting it through closing costs.
Pro Tip: At Gustan Cho Associates, we’ll break down your Loan Estimate so you understand exactly what you’re paying, when, and why.
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What Happens If You Miss Your First Mortgage Payment?
Your first mortgage payment typically has a 15-day grace period.
So, if your first payment is due October 1, you won’t be charged a late fee until October 16.
However:
- A late payment can hurt your credit if it’s 30+ days late
- Your lender may charge a late fee, typically 4%–5% of the payment
- Late payments can affect future mortgage approvals
Don’t risk it. Always set a reminder or autopay for your first mortgage payment.
Where and How Do You Make the First Mortgage Payment?
Your loan servicer (which may or may not be your lender) will contact you by mail or email after closing. They’ll provide:
- Your loan number
- Where to send payments
- Instructions to set up online payments or autopay
Ways to pay your first mortgage payment:
- Online portal (most common)
- Mail a check
- ACH transfer
- Bank bill pay
Call your lender or escrow officer immediately if you don’t receive loan payment instructions within 2–3 weeks of closing.
Does It Matter When I Close?
Yes, and here’s why:
Closing too close to a weekend or holiday can be risky. For example:
- Fridays before a 3-day weekend are notorious for funding issues.
- If your loan doesn’t fund on time, your rate lock could expire, and your move-in date might be delayed.
Play it safe: Avoid closing at the last minute. A mid-week closing (like Tuesday or Wednesday) allows errors to be corrected and documents to be recorded on time.
Work With Gustan Cho Associates to Close Smoothly
At Gustan Cho Associates, we make sure you really get what your loan is all about, especially when it comes to your first mortgage payment. Our team is here to help you with key info like your estimated closing date, prepaid interest, and what to expect from your first mortgage bill. We offer loan options without any added lender restrictions. We are available to help you seven days a week, even after you’ve closed on your home.
We also specialize in:
- FHA, VA, and USDA loans
- Conventional loans with low down payments
- Non-QM loans for self-employed borrowers
- Bank statement loans
- Manual underwriting for low credit scores
Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are experts on first mortgage payments, please contact us at 800-900-8569, text us for a faster response, or email us at gcho@gustancho.com.
Final Thoughts: Know When to Pay Your First Mortgage
Your first mortgage payment might feel like a mystery, but it’s simple once you know how it works.
Here’s the quick recap:
- It’s due on the first day of the second full month after closing
- You pay prepaid interest at closing, not a full mortgage payment
- Mortgage payments are paid in arrears
- Your closing date can impact your cash flow, but not your total cost
- You can make the payment online, by check, or by autopay
At Gustan Cho Associates, we don’t leave you guessing. We’ll help you every step of the way so you close with confidence and never miss a beat.
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Frequently Asked Questions About When is My First Mortgage Payment Due?:
Q: When is My First Mortgage Payment Due After I Close on a Home?
A: Your first mortgage payment is usually due on the first day of the second full month after closing. For example, if you close on June 15, your first payment is due August 1.
Q: Do I Pay a Mortgage at Closing?
A: No, you don’t pay a full mortgage payment at closing. You only pay prepaid interest, which covers the days between your closing date and the end of that month.
Q: What Does My First Mortgage Payment Include?
A: Your first mortgage payment covers last month’s interest, a portion of the loan principal, and—if you have escrow—your property taxes and homeowner’s insurance.
Q: Why Don’t I Pay My Mortgage Right After Closing?
A: Because mortgage payments are made in arrears, not in advance, your payment covers the month that just ended, not the upcoming one.
Q: Do I Really Skip a Mortgage Payment When I Refinance?
A: It might feel like you skip a payment, but you don’t. Your refinance closing costs include that month’s payment as prepaid interest.
Q: Can I Choose a Closing Date to Delay My First Mortgage Payment?
A: Yes! If you close early in the month, you’ll wait longer before making your first payment. If you close late in the month, your payment comes up quicker, but you’ll owe less prepaid interest at closing.
Q: What Happens if I Miss My First Mortgage Payment?
A: You usually get a 15-day grace period, but if your payment is more than 30 days late, it could hurt your credit score, lead to a late fee, and affect your chances of getting future loans.
Q: How do I Pay My First Mortgage Payment?
A: You can pay online, through your bank’s bill pay, by check, or through ACH transfer. Your loan servicer will send payment instructions within two weeks after closing.
Q: What if I Don’t Hear From My Loan Servicer After Closing?
A: If you don’t get payment info within 2–3 weeks, call your lender or escrow officer immediately to avoid missing your first mortgage payment.
Q: Why Does it Matter When I Close on My Home?
A: Closing at the end of the month means lower upfront costs. But closing early gives you more time before your first mortgage payment is due. Avoid closing on Fridays or near holidays to prevent last-minute issues.
This blog about “When Is My First Mortgage Payment Due?” was updated on August 6th, 2025.
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