Closing document that tells the borrower when and where the first mortgage payment is due.
A first payment letter is a closing document that tells the borrower when the first mortgage payment is due, the amount expected, and where payment should be sent.
A first payment letter matters because the first due date can feel delayed compared with the closing date. Mortgage interest and payment timing do not always match the borrower’s rent-payment habits or calendar expectations.
It also matters because servicing can transfer after closing. Borrowers should follow verified instructions and watch for official servicing notices rather than relying on informal payment directions.
Borrowers usually receive the first payment letter in the Closing Package or shortly after closing. It becomes relevant after Funding when the borrower moves from closing logistics to payment setup.
The letter is often reviewed with payment coupons, escrow information, and servicing contact details.
A borrower closes on June 12. The first payment letter states that the first mortgage payment is due August 1 and gives the payment address or online setup instructions the borrower should verify before sending funds.
A first payment letter differs from Prepaid Interest because prepaid interest covers interim interest collected at closing, while the first payment letter tells the borrower when the first regular payment is due.
It differs from Mortgage Servicer because the servicer is the company handling payments, while the letter is the instruction document.
It also differs from Closing Disclosure because the Closing Disclosure shows final costs and payment information, while the first payment letter is focused on the first post-closing payment.