When is first mortgage payment due?

[buyhouse36]

Where we currently live they dont give you an exact closing date. They give you a "close by" date. Then after receiving "clear to close" they schedule an exact date...which often changes.  At this point our closing will be somewhere between Jan 31st and Feb 7. I was told to push for Jan 31 because then I will save on pro rated expenses. But then my first mortgage payment will be due MArch 1st. But if I close first week of Feb, my first mortgage payment will be April 1st. But I will pay more on pro rated taxes, etc. Is this true? It seems better to postpone that first payment as long as possible. But will it really we postponed until April 1st if we close early Feb?

[ShanetheMortgageMan]

Whenever you close you will start paying mortgage interest, property taxes & homeowners insurance.  In the big scope of things you won't pay any less (or more) if you close on Jan. 27th vs. Feb. 7th.  You may pay more or less at the closing table, but since interest starts accruing the day your loan funds & your property taxes are pro-rated based on the day you close, it'll all be the same amount in the end.  If you close towards the end of the month, your 1st mortgage payment will be sooner but you will owe less pre-paid interest at closing.  If you close at the beginning of the month, you will have more time before your 1st mortgage payment is due but you'll owe more pre-paid interest at closing. As far as pro-rations on property taxes, it really depends on when they are due and what time period each installment covers.  Typically if you close within the first 10 days of the month, you have the option of your 1st mortgage payment being due the 1st of the immediate month or skipping that month and it be the following month (i.e. closing on Feb. 7th you could choose your 1st payment to be due March 1st or April 1st).  Since mortgage interest is paid in arrears, if you choose March 1st then you'll get an interest credit from the lender at closing for the remaining days in February, if you choose April 1st then you'll owe for all of February's interest at closing before the April payment starts covering interest.

[ezdriver]

Generally, your first mortgage payment is due on the 1st day of the 2nd month following your closing date. For example, if you close in February, your first mortgage payment will be due on Aproil 1st. Generally speaking of course. The timing of the actual closing date is heavily driven by the builder in the case of large scale new construction and by the lender in most other cases. The buyer is usually has the least amount of influence over the choice of closing date.

[buyhouse36]

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@ezdriver wrote:

The timing of the actual closing date is heavily driven by the builder in the case of large scale new construction and by the lender in most other cases. The buyer is usually has the least amount of influence over the choice of closing date.

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That was valuable info! Now I understand why I am getting lots of "uh huh uh huh" when I talk about the closing date. No one cares....The sellers are busy trying to find and close on a new home....the lender has to schedule and prepare the many pieces to this puzzle....I am at the bottom of the list!

Actually...now I would prefer a February closing so I dont have a mortgage payment due until April 1st.