Categories: Mortgage and Housing

How Long After Closing Is First Mortgage Payment Due?

The first mortgage payment is often calculated as the total value of the home sold minus the amount of the first mortgage. However, this calculation will often fail to include late payments. Therefore, you must add in the date that a customer has fallen behind on their mortgage and the number of months they have been delinquent.

This calculation will not be correct, unless you know the date that the customer fell behind. For many consumers, this is the most difficult part of shopping for a mortgage.

Late fees and penalties are not factored into the monthly mortgage payment

This is a common practice in today’s market. A lender will tack on an additional fee and this is added to the balance that the consumer owes the lender. As time passes by, these late fees can become massive and can cause the consumer to be seriously behind on their loan. Late fees and penalties can also result in an interest rate hike.

Some lenders do not allow consumers to pay their loan off in full at any point during the term of the mortgage

This is another practice that is common in today’s market. The lender will allow a consumer to make partial payments so long as these payments are done on time and with the proper amount of extra money. At the end of the term of the loan, the lender will force the consumer to refinance or sell the home.

Many consumers are confused about when they should begin paying down their loan

The amount of time that one has to begin to pay is based on their personal financial situation. Some people have more disposable income and can accelerate their payment. Others are more responsible and can take longer to begin paying down the loan. It is important to remember that you are just getting started with your career and should plan how long you plan to stay in your current job and how long you plan to pursue your goals.

Be honest with yourself when calculating the cost of your new mortgage

There is no set number that can be given. You will have to factor in the closing costs of getting the loan, the interest rate, appraisal fees, insurance and home inspection fees, taxes, homeowner’s association fees and private mortgage insurance premiums. These are all possible charges that could occur at any time during the life of the mortgage. This is especially true if you are buying a second, third or fourth home.

Be diligent about keeping up with your mortgage payments

Always pay your first, second and third monthly mortgage payment on time. Be sure to pay extra attention to the amount due on your fourth or month’s mortgage payment. If this number becomes due, do not ignore it. Contact your lender right away to see what can be done.

Do not let your mortgage get out of control

If you become irresponsible with finances, you will find yourself dealing with all kinds of debt problems. This can include credit card debt, auto loans and even back taxes. It is best to start planning for your financial future before your mortgage goes into foreclosure. It is never too late to start planning for the future of your family and home.

As you know, the first thing you need to do after selling your home is to close the deal with your new buyer. Be sure to get all of the necessary paperwork signed on time. Your mortgage company may have a mortgage re-approval option available to you but you should make the most of this. It is possible that you will qualify for a better mortgage rate once your mortgage payment has been fully approved. This will help you save money on the cost of your home.

Riley Allen

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