It’s quite common to make your mortgage payments weekly, biweekly or semi-monthly. Sometimes, this works out with the date that you close your mortgage – closing date is a Tuesday, and you want your payments to come out on Tuesdays. Sometimes, you want a different day – say, your mortgage closes on a Monday, but you want your payments to come out on Thursdays to coincide with your payday. In this case, your bank will often use what is called an interest adjustment date.
What this means is that the bank will close on the date that is set, but set a different date, days or weeks later, to start the payment period running. So in the example above, let’s say you are paying biweekly. Your mortgage will close on Monday, and the bank will set an interest adjustment date of three days later on the Thursday. On that day, they will pull out interest only for those three days, and then your first regular payment will be two weeks later on the Thursday, and will include principal and interest.
Just because you have a purchase closing on a specific day of the week doesn’t mean your payments have to stay there. Don’t be afraid to ask your bank for a day that is convenient for you.
