After completion, when is 1st mortgage payment due?
Does anyone know, after I complete on the purchase of my new home when will I have to pay my first mortgage payment? Is there a set time before they request the first payment? Many thanks.
- old.holly265Lv 61 decade agoFavorite Answer
There is no set time. The first payment falls due on the date stated in the mortgage deed. Your solicitor should explain this to you before arranging to complete the purchase - that way, there are no nasty surprises coming.
- 1 decade ago
No, there is no set time period before the first mortgage payment is due.
Typically, at closing, the buyer pays an amount for interest which is calculated as a daily amount (mortgage amount X interest rate = annual amount of interest payment. This annual interest payment is then divided by # of days in the year (365 or 366 in leap year) which gives the daily interest rate. When you multiply this daily amount by the number of days in a particular month, you then have the interest payment for that month.
At closing, the daily interest amount is shown and is multiplied by the number of days in the month that matches the # of days remaining in the month after the date of closing. So, if you close on the 10th day of June (a 30-day month) you'll pay interest for 20 days till the end of June. This means your 1st mortgage payment would be August 1st or 51 days after closing.
If you had enough cash at closing and you paid interest for 20 days for June and then 31 days for July, then your 1st mortgage payment would be due September 1st or 82 days after closing.
There's a real estate principle that states, "Interest is paid in arrears." This means that interest earned on the mortgage balance by the lender, for let's say July 1 to July 31st is not due for payment until August 1st by the borrower (you).
Hope this helps.
- MadManLv 71 decade ago
Mortgages are normally paid at the end or beginning of the month. Therefore, the first payment is due at the end/beginning of the month. It will be adjusted for the shorter time period and is an interest only payment. The following payment is really the first official payment, with the monthly amount as specified in your closing documents.
- DeborahLv 44 years ago
Not likely. The bankruptcy will make it impossible to get a new mortgage for well over 2 years.
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- Anonymous1 decade ago
No it will be as quick as they can get it out of your bank account. For instance if you agreed to pay on the 30th of each month ( just suppose) then as soon as the 30th comes, it will be taken.
These people are greedy, they are money lenders and there is usually no grace period.Source(s): I have had 5 mortgages in my life ( so far) and every time this is the way it happened.
- 1 decade ago
30 days or 60 days, which was mine, however you can call your morgage company and ask what the standard procedure is
- WelshLadLv 71 decade ago