topic My 1st mortgage payment in Mortgage Loans

My 1st mortgage payment

Anonymous — Wed, 17 Apr 2013 13:18:17 GMT

I am supposed to close on April 30th, but I am not 100% sure I will, since my file hasn't even been sent to the USDA yet (I'm in Georgia) and they are about 1 week behind. My LO told me if I close by April 30th, my 1st mortgage payment would be in June. Let's say I closed during the 1st week of May, would my payment still be in June or would it start in July? I know I would have to pre-pay the interest at closing for the remaining days in May if I closed early May.

Re: My 1st mortgage payment

Adalen — Wed, 17 Apr 2013 13:37:43 GMT

Pretty sure it would be in July. It was mentioned here before that mortgage payments are retrroactive, so you're essentially paying for the previous month. You pay the interest on the month of May and your first mortgage payment would be in July (for the month of June).

Re: My 1st mortgage payment

Anonymous — Wed, 17 Apr 2013 13:52:12 GMT

@Adalen wrote:
Pretty sure it would be in July. It was mentioned here before that mortgage payments are retrroactive, so you're essentially paying for the previous month. You pay the interest on the month of May and your first mortgage payment would be in July (for the month of June).

Awesome, thanks.

Re: My 1st mortgage payment

Anonymous — Mon, 22 Apr 2013 12:27:57 GMT

Yep that's correct. Payment would be due in July with more interest due at closing for the remaining days in May. And then you pay June's mortgage payment in arrears or in July.

Re: My 1st mortgage payment

tooleman694 — Mon, 22 Apr 2013 14:45:03 GMT

Yup July, you will save yourself some cash if you close in May instead of April.

This is why we closed on April 2nd instead of end of March.

Re: My 1st mortgage payment

Anonymous — Mon, 22 Apr 2013 18:29:39 GMT

@tooleman694 wrote:
Yup July, you will save yourself some cash if you close in May instead of April.

This is why we closed on April 2nd instead of end of March.

I know. I was thinking the same thing. Looks like I'll be closing in May. My file should be sent to USDA today or tomorrow and they are behind by a week. My closing is set for April 30th, so there is no way they will get to my file and approve it by then, which I don't mind. I'm just bloody glad I'm over with Underwriting. OMG, it was brutal!!! Now, the wait is on for USDA. Hope all goes well with them.

Re: My 1st mortgage payment

Anonymous — Mon, 22 Apr 2013 18:40:44 GMT

Good question, I'm curious as well.

If we close June 7th, when would the first payment be due?

Re: My 1st mortgage payment

tooleman694 — Mon, 22 Apr 2013 18:46:54 GMT

August is when it would be due

If you close June 1st you will have a full 2 month stretch of no payments, but if you close June 31st you would just get a month.

Re: My 1st mortgage payment

getmycreditright — Mon, 22 Apr 2013 19:16:27 GMT

@tooleman694 wrote:
August is when it would be due

If you close June 1st you will have a full 2 month stretch of no payments, but if you close June 31st you would just get a month.

I hope he doesn't close on June 31st because he would NEVER close.

Re: My 1st mortgage payment

Anonymous — Mon, 22 Apr 2013 21:18:54 GMT

We had lender credits plus earnest money that offset the interest owed by quite a bit. For closing Feb 6th, we had about $750 in interest to pay but with the credits applied, we only owed $133 at closing. The amount was so small that they let me write a personal check for it. On Wed, I'm sending off my second mortgage payment for April. My mortgage has already been sold to the housing authority for servicing. The housing authority paid my downpayment in full and it is rolled into a second mortgage. I had $8000 in closing costs that the builder paid in full. It is a great program I am in and wouldn't have been able to afford the upfront costs associated with a $347,900 home without this program. We were able to purchase our dream home through this program. So I always encourage folks to look around to see what's available. It was 100% financing but I recently found out the value of the home shot up $20K so I have equity already. New construction homes are really increasing in value across the US. There are others that bought a new construction home that found out it would costs much more if they went on Contract today. I know I am rambling off topic but I feel the need to reiterate these things. Don't be afraid of new construction homes. We found an inventory home fully built and that already had tons of upgrades. If you are not willing to wait to build, look at their inventory as a lot of times you can get a great deal. And the newer homes are extremely energy efficient. It costs me only $150 a month for heat/electricity for 3700 sq ft home in the cold winter months. It costs the same amount when I was renting a 1467 sq ft home. With new construction homes, maintenance costs are lower because of the warranty (we have a 5 year warranty on ours).

The program I went through is called the CHFA Homeopeners Plus Program. For folks in Colorado that are interested, their website is www.chfainfo.com I had to put down $2000 earnest, $425 for the inspection, and $133 at closing. It saved us a lot of money to get the furniture and electronics we desperately needed.