When Am I Required To Start Making Mortgage Payments?
Becoming a homeowner is an exciting venture, and the last step in this busy process is closing on the home. Once all the necessary paperwork is completed and the closing costs have been paid, you are now ready to settle into your new place. The finalization of the home sale occurs when the closing costs are paid, and is also the time your mortgage officially begins, therefore you should then expect your mortgage payments to become due every month. If you are ready to buy a home in West Palm Beach, St. Pierce, or Tampa Bay, Florida, and have questions about the details of your mortgage, CTC Mortgage is here to help. Read on to learn more about what you can expect with your monthly mortgage costs.
How Do Monthly Mortgage Payments Work?
The final step in purchasing a home is paying for closing costs, which basically cover the expenses that are not included in your mortgage, such as title insurance, appraisal and origination fees, etc. After paying for closing costs, you will then be required to start paying back the home loan in monthly payments. Typically, your first mortgage payment will be due a month from the initial date that you closed on the home. Because mortgage payments are paid in arrears, a borrower is not required to make their first payment immediately, rather, the payment will become due at the end of the month of the closing date, unlike rent payments. For instance, if a borrower closed on their home in September, their first mortgage payment would not be due until October. After that, mortgage payments will generally be due at the beginning of each month, however, some lenders might offer a small grace period before charging a late fee.
When Is The Best Time To Close On A Home?
A mortgage lender will usually charge a borrower a prepaid interest payment for the remaining days of the month that you closed on the property. Therefore, if you close on the home near the end of the month, this prepaid interest cost will be less expensive than if you were to close earlier in the month, which would increase the cost. However, if you were to close earlier in the month, it might be advantageous for you, depending on your financial situation, because that may allow you to have more time to save up for your initial mortgage payment. For instance, if you were to close on your home on May 3rd, your first mortgage payment would be due June 1st, giving you more time to save up for that first payment.
If you are looking to buy a home in West Palm Beach, St. Pierce, or Tampa Bay, Florida, and have mortgage questions, CTC Mortgage can work closely with you to help guide you during the process. Contact our office today for a consultation.
