Making payments as a homeowner has distinct differences from payments you may have made as a renter. Managing your expectations and keeping on schedule is key to making your payments on time and keeping your credit in good standing.
Your mortgage payment is typically due on the first of the month, but it’s good to confirm with your Loan Originator. Your first payment is due one full month (or 30 days) after your closing date. For example, if you close on April third, your first 30 days of owning your home will end on May fourth. Your first mortgage payment would then be due on June first, the first of the month after your 30 days.
Your mortgage payments include four parts: principal, interest, taxes, and insurance. Your first payments will mainly go toward interest, or the portion you pay to the lender to borrow the money.
Your mortgage payments follow an amortization schedule, which provides your lender a detailed look at what portion of each mortgage payment is dedicated to each component—the principal, interest, taxes, and insurance. Your first payments will mostly go toward your loan’s interest. If applicable, your payments will also pay toward an escrow account, which collects money for insurance and taxes.
How you pay will be determined by the company holding your mortgage. Many mortgage lenders, such as Homestead Funding, accept physical mailed in payments and online payments. Your lender will be in communication with you regarding how to make your mortgage payment. If you’re confused, it’s best to contact our customer service by calling 800-787-0947 or e-mailing email@example.com.
Purchasing a home can be one of the largest investments you make. Managing your payments successfully will set you up for success during the life of your loan. To learn more about how Homestead Funding can fit your unique financial needs, contact us today.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.