The best part about a mortgage is the availability of money you have to finance your life-changing decisions. The not-so-best part is to adapt to a schedule whereby you have to finance the loan every month.
So now that you have your mortgage amount verified and used, how do you know the process to pay it back? There are a few caveats which need to be noted in order to be clear on most details regarding all you need to know about your first mortgage payment.
It is assumed to be common knowledge in the world of real estate but it is indeed helpful to understand the concept clearly. This example assumes that you got your loan payment on 25th of January of a particular year. The first due date for payment can then be found by adding one month to the day you obtained the amount on, plus the number of days it will take for the new month’s 1st to arrive. So, in this example of 26th January, your payment will be due on the 1st of March.
There are two important points to note:
What you pay as part of your first installment is usually higher than the rest of the installments you make. This is due to the extra days you are allotted for the first payment. This amount will be fixed by the lender and you will be informed beforehand because it involves calculations regarding the extra period you got.
It is also good to remember that with each installment there comes a lenient period of 15 days within which your payment will not be considered as a late one. Reverting back to the first example, if you are for instance able to make a payment between the 1st and the 15th of March, your payment will be considered as timely and efficient. After this period, however, late charges as much as 6% (depending on your mortgage package) may apply on your monthly installment.
Methods of Payment
There are a number of ways in which you can make your first mortgage payment and set an organized arrangement for yourself for the rest of the installments to come.
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