If you close on January 20th, your first payment would be due on March 1st, 2013. Also, there is no "free mortgage time" since mortgage interest is paid "per diem" meaning you pay interest on every day you have a mortgage balance. Depending on when you close, you may have more or less time until the first payment is due, but you're still paying for every single day regardless. For FHA and conventional mortgages, they all do it the same way. Sometimes a HELOC type loan has a different payment schedule, but the "per diem" still applies there too.
This is also a question for you Buyer's Agent who knows more about your specific loan situation than any of us would. Under normal circumstances, if you close on January 20th, your first payment would be due on March 1st. Your 'free' mortgage time would be from January 20th to March 1st. Mortgage payments almost always start on the 1st of the month. But it really isn't 'free', it would be that the March interest is paid up front in your closing costs. You will pay it one way or the other. Either sooner or later. There is no 'free' lunch and no free mortgage time. Again, don't hesitate to check in with your Buyer Broker. He or she is getting paid well to represent you and answer your questions. Congratulations on your home purchase. You have made a great decision.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
You've gotten some very good answers here. It will be due on March 1st. There are no free days. The only thing I don't see mentioned is your grace period. At closing the Closer will mention that your payments are due on the 1st and that you have a grace period until the 15th of the month. It's clear you're thrifty, do not use that grace period for at least the first year of your mortgage in an attempt to save a few cents. I know of two buyers who nearly lost their new loans for using the grace period in the first year.
Congratulations and Good Luck!
Certified Residential Specialist
Preferred Properties, Inc.
Your first payment will be due on March 1st. At closing you will pay your monthly pro rated mortgage from the day of closing til the end of the month of January. On March 1st, you will pay your February mortgage payment.
Your agent will be able to explain this to you as well.
Cherry Creek Properties
Generally your first monthly payment will be due on the first of the second month after you close. That's where you're getting the (mistaken) 60 days figure. For instance, if you close on Jan 20, part of what you pay at closing will include the mortgage interest for the 20th through the end of that month (10 days). However, when you start making your monthly mortgage payments, the interest you pay is always collected in arrears - that is, you pay the interest for the previous month. Since you paid interest for Jan 20 - Jan 31 at closing, the next month's worth of interest (for February) will be due on the first of March. So it looks like you get to skip your first month (February's) payment. You don't explicitly notice the 10 days you pay for January because it's all mixed in with your other closing costs. However, the later in the month you close, the less interest you'll have to pay for the remainder of that month (and the lower costs you'll have) at closing.
Hope this helps, and congratulations on your new home!
You should, of course, verify this with your lender.
Best of luck and congratulations (in advance) on your home purchase!
Your Castle Real Estate
We cannot possible answer them; but I'll try.
I doubt that any Bank will go 60 days on the first payment; I would bet that you would have to beg for 35-40 days, and base your request on when you get paid. Understand that no matter when it is due, you will be paying interest on it, increasing your Vig.
Your Lender should have given you your GFE, which should show everything. They must, BY LAW!
And your Title Company should have given you your HUD1, which shows everything else. You may ask your Escrow Officer to sit down and explain everything to you: They do that.
Note: If you CLOSE in January, you will be pre-paying 6 month's of Taxes, whereas, February drops to 5 month's worth.