First-time homebuyers in Virginia Beach, Norfolk and Chesapeake, often ask me:
When is our first mortgage payment due? We heard that you get to skip a month of mortgage payments. Is that true?
Yes, you do “skip a month” following your closing date. Let me explain how it works.
At the closing table, you don’t provide a mortgage payment. Instead, you need to pay interest on the loan for the days that remain in the month as part of your closing costs.
Let’s say you close on a house May 7. You then pay interest on the loan for the days left in May.
Every mortgage payment covers the previous month. So if you close on the house May 7, you don’t have a mortgage payment until July 1. That’s because the July 1 payment covers the month of June.
That’s how you “skip a payment” the very first time.