When is the first loan payment due for a buyer getting a $155,000 loan at 5% interest if the closing occurs on April 20?

The first loan payment typically becomes due one month after the closing date of the loan. In this scenario, since the closing occurs on April 20, the borrower’s first loan payment would generally be due on the first day of the following month. Therefore, since the closing is in April, the first payment would be due on May 1.

However, in many lending practices, the interest on the loan is calculated in a way that the first full payment includes the interest for the complete month following the closing date. In this case, if a lender allows the first payment to be pushed to the next month after May, that would lead to a July first payment due, which would result in payments taking effect starting June. Therefore, the borrower would make no payment in May, and the next payment would be generated on June 1, effectively creating a one-month interval.

Thus, the follow-up understanding of mortgage payment schedules in relation to closing dates ensures that the specific due date aligns with standard operational norms in the lending industry.