You could close earlier in the month, but you would need to pay prepaid interest on the remaining days in that month. We’ll cover this in more detail below.
How to make your first mortgage payment
There are several ways to make your first mortgage payment:
- Autopay: The mortgage company takes the payment from your bank account on the same day each month, and you don’t have to worry about late payments or fees.
- Mail a check: You can use the address provided by your mortgage company.
- Drop it off: If you live near your lender’s office, they may let you drop off payment each month.
How much your first mortgage payment will be
To find out how much your first mortgage payment will be, check your closing disclosure form. You’ll get this form at least three days before closing, and it will say how much your monthly mortgage payment will be.
If you have a fixed-rate mortgage, your first mortgage payment will be the same as each subsequent payment throughout the life of the mortgage. The only caveat is that your payment may be adjusted to accommodate higher property taxes or homeowners insurance, both of which are paid from your escrow account.
If you have a variable-rate loan, your first mortgage payment will be the amount listed on the closing disclosure form.
Learn more: Closing Disclosure: What It Is, How It Works, and How to Read One
What you’ll pay instead of a mortgage payment at closing
Though you won’t make a mortgage payment at closing, you will be responsible for paying prepaid interest. Prepaid interest is the daily interest you’re charged between the time you close and the time you make your first mortgage payment. Mortgage interest starts accruing on your loan the day you close, and it doesn’t stop accruing until you pay the mortgage off in full.
The amount of prepaid interest you pay depends on the day the mortgage closing occurs. Let’s say you close on Jan. 10. The daily interest is multiplied by the number of days left in the month. In this case, you’d owe 21 days’ worth of prepaid interest, from Jan. 10 to Jan. 31.
At closing, you’re likely to also pay:
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Source: https://www.fool.com/the-ascent/mortgages/first-mortgage-payment/