When is my first mortgage payment due? New homeowner’s guide

You’ve paid the closing costs, signed on the dotted line, and finished moving in — yet you still haven’t made your first mortgage payment. So why the wait, and when will your lender come knocking?

This article answers the question “When is my first mortgage payment due?” in detail. You’ll learn ways to make your first payment and what to expect with grace periods and late fees.

When is my first mortgage payment due after closing?

You have a 30-day grace period after closing, with your first payment due on the first of the following month. For example, if you close on March 12, you’d add 30 days, which brings you to April 12. You’d pay your first bill on May 1. 

If it seems strange that the first mortgage due date comes so far after closing, it’s because mortgages are paid in arrears. In other words, each payment covers the previous month, not the month ahead. This structure allows lenders to calculate the exact interest you owe at the end of each month rather than estimating it in advance.

There’s one exception to the arrears rule: the period between your closing date and the end of that same month. Your lender calculates the interest for that partial month up front and adds it to your closing costs. For example, if you closed on June 10, you’d prepay interest for June 10 through June 30.

You don’t have to calculate your first loan payment on your own, though. The exact date and amount will be detailed in your closing paperwork, usually in a document called the First Payment Letter. This also breaks down your monthly bill, including principal, interest. 

Many loans also include an escrow portion. With escrow, your lender collects part of your payment to cover property taxes and homeowners' insurance, and pays those bills directly when they’re due.

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What factors affect your first mortgage payment due date?

The timing of your first mortgage payment can vary, but it usually comes down to two main factors. Let’s take a look at both.

Your closing date

Your closing month is the biggest factor in determining when your first mortgage payment is due. What can vary is the amount of time you have until that first full payment. The earlier you close, the more time you’ll have. If you close on June 2, for example, your first loan payment won’t be due until August 1 — nearly two full months later.

Keep in mind that extra time doesn’t mean you’re skipping interest. No matter the gap, you’ll pay for it in the form of prepaid interest at closing. Still, finalizing your home purchase earlier in the month gives you practical advantages, such as:

— More time for your budget to recover after closing costs, moving expenses, and repairs

— The flexibility to align your first bill with your income cycle, the end of a lease, or an upcoming bonus

Early payment

You can always make your first loan payment before the official due date. While it won’t reduce costs already covered in prepaid interest, it can give you peace of mind and help build a routine. Some borrowers pay right away to feel like the mortgage is officially underway, while others may time their first bill to match their paychecks.

How much will my first mortgage payment be?

Your lender will let you know the amount of your initial mortgage payment in the First Payment Letter. The total breaks down into:

— Principal: This portion of your payment goes toward reducing your loan balance.

— Interest: This is the fee you pay your lender for borrowing their money. It’s calculated as a percentage of your loan balance, and the way it compounds varies depending on your loan terms.

— Property and school taxes: These are often included in escrow. Your lender estimates the annual amount owed, divides it into monthly installments, and collects it with your mortgage payment. The full amount is then paid directly to the tax authority when due.

— Private mortgage insurance (PMI): Lenders require PMI if your down payment is under 20 percent. It protects them if you stop making payments. Once you’ve paid down enough of your loan, usually when you reach 20 percent equity, you can request to have PMI removed.

— Homeowners insurance: This policy protects your home from damage or loss. If escrowed, your lender adds the premium to your mortgage payment and sends it to the insurer for you.

Keep in mind that some expenses, like homeowners' association fees, are billed separately and won’t appear in your monthly mortgage bill.

Tips for preparing for your first mortgage payment after closing

Keep these suggestions in mind to make sure your first mortgage payment goes smoothly.

Set up payment systems early

Enroll in your lender’s online portal or confirm how to pay by phone or mail well before the due date. Doing this early gives you time to fix issues like login errors, missing account numbers, and transfer delays so you’re not scrambling at the last minute.

Plan for additional expenses

Your first monthly mortgage payment only covers principal, interest, and any escrowed items. Beyond that, homeownership brings new costs, from utility bills to trash collection. You may also face one-time expenses like new furniture or repairs soon after you get the keys, so keeping extra room in your budget can prevent financial strain.

Time your closing date carefully

If you need more breathing room in your budget before the first payment, coordinate with your real estate agent to close earlier in the month. Doing so creates a longer gap before that first bill is due. You can also schedule the start of payments to better match your income, lease, and other major expenses to keep your budget on track. 

How do I pay my first mortgage payment?

Most mortgage lenders offer several ways to make your first payment, including the following.

Online

Paying online is the fastest and most convenient option for most borrowers. Once you register and add your account information, you can make a one-time transfer or set up autopay to ensure your bills are always covered. Most online systems process right away and provide instant confirmation.

Many lenders, including Better, help you save money and avoid late fees with our sub-servicing partner’s no-fee autopay feature. Apply for a Better mortgage with a great interest rate in as little as three minutes, close up to 10 days faster than the national average, and simply set and forget your monthly payments.

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By phone

If you prefer speaking with a live representative, paying by phone is another option. You’ll find your lender’s customer service number on your monthly statement, online account portal, or closing documents. 

Have your mortgage account number and details on hand, and ask about any service charges before authorizing payment. Phone transactions don’t always post instantly, so check the processing time in advance to avoid late fees.

By mail

You can also send a personal check, cashier’s check, or money order directly to your lender. Request the correct mailing address and include your loan account numbers on the check. Be sure to send the payment early enough to arrive before the due date since mail processing can take several days. 

What happens if you miss a mortgage payment?

Consistently missing mortgage payments is a sure way to strain your relationship with your loan provider, trigger late fees, and damage your credit score. However, most lenders offer a 10 to 15-day grace period before a payment is officially considered late. If you pay within this window, you can sidestep the penalties that typically come with a missed payment, such as:

— Late fees: Lenders typically charge 4–5% of the overdue payment amount, though the percentage can vary.

— Additional interest charges: Certain unconventional loans raise your interest rate once a payment is late, adding costs for the rest of the term.

— Non-sufficient funds fee: Lenders may charge $15–75 if your payment doesn’t go through due to insufficient funds.

— Credit reporting: Lenders typically report payments that are 30 days late or more, and they can remain on your credit report for up to seven years.

— Foreclosure costs: Falling far enough behind can lead to foreclosure. In the first quarter of 2025, nearly 94,000 properties received foreclosure filings.

Homeownership the simple way with Better

After the long process of hunting down your dream home, securing financing, and making it through closing, the last thing you want is uncertainty around your first mortgage payment. Fortunately, your closing documents clearly outline both the due date and the exact amount, so there are no surprises.

Better makes everything else easy, too. Our fully online platform delivers pre-approvals in as little as three minutes and funding in as few as seven days. And if you do run into issues, our dedicated support team is on hand 24/7 to help get you through it. 

...in as little as 3 minutes – no credit impact

FAQ

Is the first mortgage payment higher than usual?

No, your first month’s mortgage payment shouldn’t be higher than the rest. Any interest that accrues between your closing date and the month’s end is already covered through prepaid interest. 

The only potential curveball is escrow payments, which include property taxes and insurance. Double-check your First Payment Letter to verify what’s factored in so you know exactly what to expect.

What does it mean for mortgage payments to be paid in arrears?

Mortgage payments being paid in arrears means you’re covering the previous month’s interest and principal, not the current one. For example, a payment due on May 1 covers April’s mortgage costs.