A first-time home buyer in Sacramento asked me when her first mortgage payment would be due. So, I figured if she doesn't know when her first mortgage payment is due, others, even those who are refinancing an existing mortgage, may have the same question.
First, understand that the interest portion of your mortgage payment, which constitutes almost your entire payment, is calculated in arrears. Unlike a rent payment, which is paid in advance, a mortgage payment is paid for the previous month. Sound confusing? It sort of is.
Say, for example, that you closed escrow today, on May 9th. Your first mortgage payment will be due on July 1. You will pay interest in escrow from May 9 to May 31. When you make your first mortgage payment on July 1, that payment will pay the interest for the month of June, and the mortgage balance (the principal portion) will be reduced as of July 1.
So while it may seem like you are getting almost two months free, you really aren't.
The Short Sale Savior, by Elizabeth Weintraub, now available at Amazon.com
Photo: Big Stock Photo
If you are looking for a Sacramento real estate agent, call Elizabeth Weintraub at 916.233.6759. Put 35 years of experience to work for you.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
