Refinancing Home Mortgage
In: Mortgage Payment
7 Apr 2010I just bought a house and it’s expected to close within the next few weeks. Unfortunately I haven’t been given an exact date yet. My mortgage broker says that if I close before October 1st than my 1st payment wont be until November. Why is this and what happens if my closing date is after October 1st? Thanks in advance.
This is about mortgage information questions.
2 Responses to When will my 1st mortgage payment be?
Great Scott
April 7th, 2010 at 1:21 am
It will be November or December 1. Your paperwork will tell you which.
Rush is a band
April 7th, 2010 at 1:45 am
At closing you will pay the interest on your mortgage for the remainder of that month.
Let’s say you close on October 15th. You will pay October’s interest (16 days) at closing. Mortgage payments are collected in arrears, which means after the month you’ve lived there. You don’t pay for November’s interest (and principal, I hope) until December 1st.
If you close on September 28th, you’ll pay for the rest of September’s interest (3 days) at closing. Then your first payment will be on November 1st (in arrears from October).
That’s why it looks like a little delay in starting to pay for your house!
good luck!