1st Mortgage payment 1 month 'delay'?

[abc]

been finding out that when people get a house and start a mortgage, they don't necessarily make their firstpayment on the 1st month, they start on the 2nd/3rd even..

is this a per/bank basis perk or some Law to help you ease into making payments after you've moved in/buy furniture etc...

 

[Kelemvor]

Pretty sure you always pay the second month or so. No idea why or how it technically works out though. All depends on the closing date and such too.

 

[cliftonite]

Dont you pay the first month at closing?

 

[dartworth]

Originally posted by: cliftonite
Dont you pay the first month at closing?

I believe so...you're paying for it one way or another. Don't look at it as you don't have to pay it.

 

[Vic]

Federal law requires a minimum 30 day delay between closing and the 1st payment. As almost all 1st mortgage lenders structure their payment due dates to be on the 1st of the month, this could mean more than a month with no payment.
There is, however, no free lunch. While your 1st payment may not be due for more than month, interest does not sleep, and the interest that will accrue during that time period will have to paid (under the name "interim interest") at closing.

 

[josphII]

it all depends on how the loan agent structures the loan (and approval of the bank)

 

[machintos]

If you close between the 1st and the 6th (if I remeber correctly) of the month, you will start paying your mortgage the following month. (short pay)
If you close anytime after the 6th until the end of the month, you will skip the following month and start paying the month after that. (long pay)