first mortgage payment

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When the first mortgage payment does become due after closing? Is there any financial advantage in closing on a particular period of the month like in last or first week of the month?

blue · Posted: Wed Jun 21, 2006 10:01 am Post subject:

Hi Sue,

You will find the first payment on the mortgage Note that you signed at the closing. Normally you find that the first mortgage falls due on the 1st of the month after the month following your closing.

Samantha · Posted: Wed Jun 21, 2006 10:43 am Post subject:

Hi Sue,

Welcome to MortgageFit Forums.

There is no financial advantage in closing on a particular period of the month. The first payment on a home mortgage loan becomes due on the first day of the month.

The interest starts counting on the closing date. So, it's better if you can select a closing date close to the date you move in regardless of the date or period of the month. The reason is that there is no point in paying interest unnecessarily if you plan to move later.

While you pay interest starting from the closing date, the payment mode may be different depending on your closing time.

For example if you close on July 28, you will have to pay interest for July 29, 30, 31 and August 1. Your first monthly payment will be due on September 1. Here the cash required at closing will be higher but the first payment will be pushed behind by almost a month.

Again if you close on July 3 getting an interest credit at closing for 3 days with the first payment due on August 1, the cash required at closing will be lower. But you need to pay a full month interest on August 1 even though you are not going to have the loan for a full month.

Feel free to ask if you have any more doubts.

God bless you.

For MortgageFit,
Samantha

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