Bridget's Blog


FHA Loans-Maryland First Time Homebuyer Questions

FHA Loans-Maryland First time homebuyer questions



How come I don't have a payment due for a month or more after closing? 


You will pay the interest that will accumulate between the day of settlement and the end of that month as part of the costs that are paid at closing.  The payment that is due on the 1st of each month pays principal and interest that has accrued from the prior 30 days. So that means if you close on October 10th, you will pay interest from closing through October 31st.  Your first payment will be due on December 1st.  


If you close within the first 5 days of the month you may wish to get an interest credit, making the first payment due the first of the following month.  In this case, if you close on October 3rd, you will get a credit of 3 days of interest and your first payment will be due on November 1st.  


Should I pay extra principal?


We do not recommend paying down principal until you have a secure nest egg and have accounted for any expenses related to moving into your new home.  With a new home, there are always unforeseen costs.  Accumulating a nest egg of 3-6 months mortgage payments is a good idea before paying extra toward principal.


Once your loan is active, any additional payments made after the scheduled monthly payment is made may be applied to principal or could possibly be applied toward the next payment.  Typically, if you note how you want the payment to be applied, the servicer will apply the payment properly.  Making partial payments outside of your monthly payments are not recommended- this may confuse the servicer unless it is a payment toward principal.

Warm Regards,

Bridget McGee  Maryland Mortgage Mama  NMLS# 196068  SWBC Mortgage.   410-960-2061 EHO or


If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure! 

If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

Comment balloon 1 commentBridget "Mortgage Mama" McGee • September 24 2011 09:50PM


Thank you for sharing the post. Good advice, your are clients are well served.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 8 years ago