Understanding Your First Mortgage Payment: A Guide for New Homeowners

Understanding Your First Mortgage Payment: A Guide for New Homeowners

Welcome to the exciting journey of homeownership! If you’ve recently closed on a new home, you might be wondering about your first mortgage payment. It’s a common question among first-time buyers, and understanding the payment schedule is crucial for financial planning. In this blog, we’ll explain when your first mortgage payment is due and the concept of paying in arrears in the mortgage world.

What Does “Paying in Arrears” Mean?

In mortgage terms, paying in arrears means you’re paying for the previous month’s occupancy, not the current one. This is different from rent payments, which are usually paid in advance. This concept is important to grasp as it affects when your first mortgage payment is due.

When is Your First Mortgage Payment Due?

Typically, your first mortgage payment is due on the first day of the second month following your closing date. For example, if you close on your home on April 15th, your first mortgage payment won’t be due until June 1st. This is because you are paying for May’s interest in June.

Closing Early in the Month

If you close early in the month, say on April 1st, you’ll enjoy nearly two months without a mortgage payment, with your first payment due on June 1st. However, remember that at closing, you will still be responsible for paying the interest accrued from your closing date until the end of the month.

Financial Planning for New Homeowners

This gap period before the first mortgage payment can provide some financial relief. It’s an excellent opportunity to budget for future payments, furnish your new home, or simply build your savings.


Understanding your mortgage payment schedule is a key part of financial planning when buying a new home. If you have any more questions about mortgages or home buying, feel free to contact a professional for personalized advice.