First Mortgage Payment

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Your First Mortgage Payment

Thousands upon thousands of people every year in the United States, so you are not alone, yet so many people know so little about closing a mortgage and the first payment after that. Why is that? Unlike many things that you buy and pay up front for, you are taking out a loan. So to start, there is a lot more involved than simply putting down some money and getting some property. First of allyou have to realize that you will be paying in installments, for this we will assume monthly. So your entire mortgage is going to be divided up in to months. This is where the confusion normally starts. Most commercial lenders will have you start paying on the first of a month.

Now on to the second confusing part. This is that the paper work takes a little while to be processed, especially when you go through a third party. Once everything is done, then you have the signing date. After that there is, with most lenders a two "month" period before you start paying. The reason months is in quotes is because they want to start on the first normally so if you don't sign on the first of the month they will round.

Missing the First Months Payment

Although it is rare sometimes you miss the first mortgage payment. Sometimes it's an accident, other times you don't have the money and in a few cases it is offered. So what will happen if you miss your first payment? In any of the cases it will probably be added on to your total balance and you will pay interest on it. It is very unfortunate because that means the borrower will be paying interest on it for the whole term of the mortgage. Even a small amont at that point can add up to a pretty large number, and you will have to pay it back in the end if you can't pay it back right off the bat.

If you'd like to know how much it or any other missed payments will cost you in the long run, take the amount you missed, plus any late fees and other charges and multiply it by the interest rate divided by 100(if it's 10% it would be 0.10) and multiply that by the term of the mortgage(in years). You can also divide that by twelve and you get what you will be paying per month.

There's no reason to hide under the sheets. Just follow the instructions. It is a big step in to a whole new life, but you get used to it and it becomes as normal as anything else.

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