When your first mortgage payment is due
Your first payment is due on the first day of the month after one full month has passed since closing. Close any day in March, and the first payment is due May 1.
Why there seems to be a skipped month
Mortgage interest is paid after it builds up, not in advance. Your May 1 payment covers April’s interest. The days left in March after you close are paid at the closing table as prepaid interest. So nothing is skipped; you’ve simply already paid for the partial month.
Does the closing date matter?
Closing late in the month means fewer days of prepaid interest, which lowers your cash to close. Closing early in the month means more prepaid interest, but a longer wait before the first payment. The total interest is the same either way. Choose the date that fits your lease, your movers and your rate lock.
What to do before the first payment
- Look for a first payment letter or coupon in your closing documents.
- Set up online access and autopay with your servicer.
- If you get a notice that your loan was sold or the servicing moved, confirm it using contact details from your closing documents. See mortgage servicing transfers.
Your payment may change after a year or so if your taxes or insurance change; see escrow accounts, explained.
Questions buyers ask
When is my first mortgage payment due after closing?
On the first of the month after one full month has passed. If you close in March, your first payment is due May 1.
Do I skip a mortgage payment when I buy a house?
No. You prepay interest at closing for the rest of the closing month, and your first regular payment covers the following month’s interest.
Is it better to close at the end of the month?
It lowers your cash to close, because you prepay fewer days of interest. It doesn’t save money overall, and the end of the month is the busiest time for lenders and title companies.