first mortgage payment

[Anonymous]

If i closed on 6/1 when is my first mortgage payment due? what if I need 2 months notice to the landlord?

Thanks

[SilverBerries]

I'm set to close June 1st. The first mortgage payment would not be due until August 1st. Unlike most things that you pay for, you don't "pre-pay" a month ahead on a mortgage, you actually pay at the end of the month for the time you've already been in the house. I've heard someone here put it succinctly - if you close on the 1st, it gives you about 60 days, on the 15th, 45 days, and on the 30th, 30 days.

SilverBerries

[thrasher865]

lol, I wouldn't call it "prepaying" the first month, because a mortgage is not rent.  You aren't paying for the right to live there month to month.  You are paying back a loan that was used to buy the house.  Like if you go to the bank and get a loan for a car or whatever, you don't immediately turn around and pay the first months payment 10 days later.  Lol it would be silly to borrow $200,000 and then immediately turn around and pay them $1800 or whatever.  I consider the down payment the first month's payment

So when you pay at the end of the month, I don't think of it like paying utilities after you've gotten a month's use, but anywho thats beside the point and completely irrelevant.  You will not have a first month mortgage payment.

On a side note, does your lease agreement require 2 months notice?  I'm on a month-to-month basis now, because my lease was up in February, so I only require 30 days notice.  I don't know if I'm allowed to suggest this, but it is not uncommon for people to break their leases.  You will lose your deposit, but it may make sense.  I would just give as much notice as it makes financial sense to give.  Try to give 30 days.

Message Edited by thrasher865 on 05-04-2009 10:36 AM

[DallasLoanGuy]

Ask your loan officer.

Interest is paid in arrears... "after it has occured"

So your first payment will be when you have accrued 1 month of interest.

If you pay the interest thru the end of the month(June) then you will not make a payment in July(paid at closing) and August 1st will be first payment.

You can, however, reduce your closing costs a little by not paying that whole month of interest at closing and take a credit for the one day..... making 1st payment July 1st. Most lenders can set this up for you.

We call this a short pay.

Don't know why.... it doesn't sound right.... but this is what it is.