How Long After You Close On A House Is Your First Payment?

Buying a house is an exciting milestone, but it also involves a lot of planning and budgeting. One of the key things new homeowners need to prepare for is when their first mortgage payment will be due after closing. Knowing when that first payment hits can help you budget and avoid potential financial surprises.

When To Expect The First Payment

In most cases, your first mortgage payment will be due the first of the month after one full month from when you closed. For example:

• If you close on August 17th, your first payment would be due October 1st.
• If you close on August 2nd, your first payment would also be October 1st.

The due date is based on closing at any point during a month, with the first full payment not kicking in until the start of the second month after that

This grace period of one month between closing and your first payment being due exists because mortgage payments are made in arrears That means your payment on the 1st of a month covers the interest and principal for the previous month of ownership,

So even though you may not make your first mortgage payment for a month or more after closing, you will owe interest from the date of closing through when that first payment is made

How The Closing Date Impacts Your Costs

While your first payment amount doesn’t change no matter when you close, the closing timeline does impact your upfront costs.

If you close later in a month, your first payment comes due sooner—in about a month. This gives you less breathing room in your budget.

Closing earlier in a month delays that first payment due date by up to another 30 days. While this reduces pressure on your budget shortly after closing, it increases your closing costs.

That’s because the lender has to collect more interest upfront to cover the longer gap until your first mortgage payment. This gets rolled into your closing costs.

• Closing late in the month saves on closing costs but your first payment hits faster
• Closing early in the month raises closing costs but gives you more time before the first payment

Many homeowners aim to close at the beginning of a month for this reason. But work with your lender if another timeline would be better for your personal finances.

How To Budget For The First Payment

Your first mortgage payment could coincide with when you need to make a final rental payment. You may also have moving expenses and other homebuying costs flowing out of your account.

Here are some tips to ensure your budget is primed and ready for that first mortgage payment:

• Bulk up your downpayment savings. Having extra savings gives you a buffer for any unforeseen costs.
• Reduce discretionary spending in the months surrounding your home purchase.
• Pay large bills ahead of time, like 6 months of car insurance premiums. This minimizes monthly bills.
• Start saving specifically for your first mortgage payment a month or two ahead.
• Set up automatic mortgage payments to avoid a late fee if you forget that first due date.
• Plan closing date strategically based on your current lease and other factors to minimize overlapping housing payments.

With the right preparation, you can avoid financial stress when that first mortgage payment comes due. Know when it’s expected, budget diligently and you’ll be off to a great start as a new homeowner.

Other Common Questions

Below are answers to some other frequent questions new homeowners have about mortgage payments:

Can you change when your mortgage payment is due?

In most cases, no—the due date is set when you originate the mortgage and can’t be altered. Many lenders won’t allow it.

That said, you may have flexibility in setting an automatic payment to withdraw a few days before the due date, giving you some wiggle room.

What if you miss the first payment?

As with any mortgage payment, a missed first payment isn’t good. Many lenders give you a 15 day grace period to pay after the due date before they charge a late fee.

If you can’t pay within 15 days and the payment becomes 30 days late, it will likely get reported to the credit bureaus and hurt your credit score.

A payment 60+ days late can severely damage your credit. So do everything you can to pay even a partial payment by the due date. Immediately contact your lender if you are struggling to pay.

Do closing costs include the first payment?

No, closing costs are the upfront fees charged to finalize and fund the mortgage. These include lender fees, third party fees, prepaid interest, escrow deposits and other costs.

Your first mortgage payment will be drafted from your bank account separately sometime in the month or two after you close, depending on your timeline.

Can I pay more upfront to delay the first payment?

Not directly. You can’t prepay your mortgage payments in advance. But by closing early in a month you increase prepaid interest collected at closing, which indirectly delays that first payment due date.

What if I’m still paying rent when the first payment comes due?

This is very common since lease cycles and home purchase dates rarely align perfectly. The key is planning ahead—saving up any extra funds you may need to cover both housing payments at the same time.

Also negotiate the closing date strategically to minimize overlapping payments. You can’t entirely avoid it but some smart planning can help.

Know When To Anticipate That First Payment

As the big day to close on your home purchase nears, make sure you know when your first mortgage payment will come due. This will help immensely with budgeting.

You want your personal finances primed and ready to cover all the new expenses that come with homeownership—including that very first mortgage payment. With proper planning during this transition, you’ll be off to a great start paying off your new home.