When Does My First Mortgage Payment Start After Closing?

If you’ve ever wondered when your first mortgage payment is due after closing, you’re not alone — it’s one of the most common questions new homeowners ask. The good news? You usually get a little breathing room before that first payment kicks in.

Let’s break down how it works (and why).

💰 The Quick Answer

Your first mortgage payment is typically due on the first day of the second month after closing.

So if you close on June 10, your first payment won’t be due until August 1.
If you close on November 25, your first payment will be due January 1.

That’s because mortgage payments are made in arrears — meaning you pay for the month that just passed, not the one ahead.

🗓️ Why You Skip a Month (or Two) of Payments

When you close on your home, you’ll pay prepaid interest that covers the time from your closing date through the end of that month. This is what gives you that “grace period” before your first regular payment begins.

Let’s use an example:

• You close on November 15.
  
  
• You’ll pay interest at closing to cover November 15–30.
  
  
• Your first full payment (covering December’s interest and January’s principal) will be due January 1.
  
  

That’s why so many buyers like to close near the end of the month — it reduces the amount of prepaid interest you owe at closing and keeps cash flow predictable.

🧾 What’s Included in That First Payment

Your first mortgage payment typically covers:

• Principal (the amount you borrowed)
  
  
• Interest (the cost of borrowing it)
  
  
• Escrow (if applicable — property taxes and homeowners insurance)
  
  

You’ll get a breakdown from your lender called a mortgage amortization schedule that shows exactly how each payment is applied.

📊 Pro Tip: Timing Your Closing Strategically

If you’re working with a flexible seller or builder, timing your closing date can help you:

• Reduce prepaid interest (by closing at month-end)
  
  
• Delay your first payment (by closing mid- to late-month)
  
  
• Optimize tax deductions (if you close before year-end)
  
  

In other words, when you close can affect your short-term cash flow — and smart planning can save you hundreds.

🏠 The Bottom Line

You’ll usually have 30–45 days between closing and your first mortgage payment. That short gap gives you time to settle in, buy furniture, and recover from moving expenses before your first bill arrives.

If you’re buying a home soon and want help mapping out your ideal closing date and payment timeline, I’d love to help you plan ahead.

Ready to find your Austin home?
Let’s talk about your budget, ideal timing, and how to make your first payment date work for you.