Send the payment to the address your lender gives you, not to the seller or the title company

Your first mortgage payment goes to your loan servicer, which is the company that will collect your monthly payments for the life of the loan. This is almost never the bank that originated your mortgage. You will receive a letter from your servicer within a few days of closing, and it will include the mailing address where you send payments, the account number to reference, and the exact amount due.

Do not send money to the title company, the real estate agent, the seller, or the bank that closed your loan. Those entities have no role in collecting payments. If you cannot locate your servicer's address, call the number on your closing disclosure (the document you signed at closing) and ask for payment instructions. Many servicers also accept payments online through their website or through automatic bank transfers.

The payment due date is printed on your closing disclosure and will also appear in your servicer's first letter. Most mortgages have a due date between the 1st and 15th of the month. Your first payment is usually due 30 to 60 days after closing, not the month after closing. If you closed on March 15, your first payment might not be due until May 1.

Key Takeaways

  • Your loan servicer, not your lender or the title company, collects mortgage payments, and their mailing address appears on your closing disclosure and in their first letter to you.
  • Your first payment due date is typically 30 to 60 days after closing, not the following month, so check your closing disclosure to confirm the exact date.
  • You can pay by mail, online through your servicer's website, or by setting up automatic transfers from your bank account.
  • Late fees begin if payment arrives after the grace period, which is usually 10 to 15 days after the due date, so plan to send payment at least a week early.
  • Your payment includes principal, interest, and possibly property taxes and insurance if they are escrowed, and the breakdown appears on your monthly statement.

Payment methods: mail, online, or automatic transfer

Most servicers offer three ways to pay. Mailing a check is the slowest method—the payment must arrive at the servicer's address by the due date, so mail it at least 10 days early. Online payment through your servicer's website is faster and lets you choose the payment date; the money usually leaves your bank account within one business day. Automatic transfer (also called autopay) withdraws the payment from your checking account on a date you choose, usually a few days before the due date.

To set up online payment or autopay, log into your servicer's website using the account number from your closing disclosure. You will need your bank account number and routing number. Autopay eliminates the risk of forgetting a payment, but you must may support your bank account has enough money on the withdrawal date. If you prefer to pay by phone, some servicers accept credit card payments through a third-party processor, though they usually charge a fee of 2 to 3 percent.

What happens if you miss the due date

Most mortgages include a grace period of 10 to 15 days after the due date. If your payment arrives during the grace period, it is on time and no late fee applies. If payment arrives after the grace period ends, your servicer charges a late fee, usually 4 to 5 percent of your monthly payment amount. A payment 30 days late is reported to the credit bureaus and damages your credit score.

If you know you will miss a payment, contact your servicer when ready. Many offer forbearance (a temporary pause on payments) or a modified payment plan if you explain your situation before the payment is due. Waiting until after you are late makes these options much harder to access. Your servicer's phone number is on your closing disclosure and on every monthly statement.

Understanding what is included in your payment

Your monthly payment is divided into four parts, often called PITI: principal, interest, taxes, and insurance. Principal is the amount that reduces your loan balance. Interest is what the lender charges for lending you the money. Property taxes and homeowners insurance are included only if your lender requires them to be escrowed—held in an account and paid on your behalf.

Your first payment statement will show the exact breakdown. In the early years of the loan, most of your payment goes toward interest; the principal portion grows over time. If taxes or insurance are escrowed, your servicer pays those bills directly to the tax assessor and insurance company, so you do not receive separate bills for them. If they are not escrowed, you pay the tax assessor and insurance company separately.

Confirming payment was received

After you send your first payment, check your servicer's website or call their customer service line to confirm it was received and posted to your account. This usually takes 3 to 5 business days if you paid by mail, or 1 to 2 business days if you paid online. Your servicer will send you a monthly statement showing the payment received, the remaining balance, and the next due date.

Keep records of your first few payments—bank statements, online confirmation screens, or cancelled checks. These prove you paid on time if a dispute ever arises. If you set up autopay, log in monthly to verify the payment went through, especially in the first few months.

Paying extra principal to reduce interest

Some borrowers send extra money with their first payment to reduce the principal balance faster. This is allowed on nearly all mortgages, but you must specify that the extra amount should go toward principal, not toward future payments. Write "explore to principal" on the check or select that option when paying online.

Paying extra principal reduces the total interest you pay over the life of the loan and shortens the payoff timeline. However, this does not reduce your required monthly payment—you still owe the full amount each month. Only send extra principal if your monthly budget can comfortably absorb the regular payment without strain.

Frequently Asked Questions

What if I close on the 15th of the month—when is my first payment due?

Your first payment is due 30 to 60 days after closing, not on the 15th of the following month. If you closed on March 15, your first payment might be due May 1 or later. Your closing disclosure states the exact due date. Contact your servicer if you are unsure.

Can I pay my mortgage with a credit card?

Most servicers do not accept credit cards directly because the processing fees are too high. Some allow payment through a third-party processor that charges 2 to 3 percent. Paying with a credit card to earn rewards usually costs more than the rewards are worth.

What if my servicer changes after I close?

Mortgages are sometimes sold to different servicers after closing. Your new servicer will send you a letter with their payment address and instructions. Continue paying until you receive that letter, then switch to the new servicer's address. You will receive a 30-day notice before the transfer takes effect.

Do I have to pay property taxes and insurance through escrow?

It depends on your loan type and down payment. Conventional loans with less than 20 percent down usually require escrow. FHA and VA loans often require it. Your loan estimate and closing disclosure state whether escrow is required. If it is not required, you can choose to pay taxes and insurance separately.

What if I want to pay my mortgage biweekly instead of monthly?

Some servicers offer biweekly payment plans, which result in one extra payment per year and reduce interest over time. Ask your servicer if this option is available and whether they charge a fee to set it up. Biweekly payments are optional, not required.