Mortgage due date vs late date

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I searched and couldn't find the answer.
My mortgage due date is 1st of every month however payment is not considered late until 15th. So does that mean I can always pay on 14th day ?
I called the credit union and CSR sounded like he just made something up on fly (sounded unsure). He said it is okay to pay on 14th day.
So the questions are :
1) was he right ?
2) Can I do it for whole year without showing 'late' on my credit history ?
3) Any adverse effects of paying on 14th ?

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Yes. First mortgages generally have a 15 day grace period where there is no late fee or credit dings at all. Also, you normally need to be 30+ days late to get a credit hit anyways.

You can pay by the 14th without any fees or adverse effect on your credit score. Nevertheless, you should pay by the 10th to make sure you do not get dinged with the late fee if the payment is not processed in time. The added few days of float is not worth the late fee and the hit on your credit score.

Being late on your mortgage affects your chances of getting another mortgage even if it is not thirty days late. I know because I tried a refi and the bank said I was late once two years ago so I was a late payer. (I missed it by a business day.) Ever since then, I have paid five days before the late fee day.

some mortgage lenders will charge you a small service fee if you pay after x days.

E.g.
due date is 1st, $1000 regular payment
if you pay between the 10th and 15th, you pay $1010
if you pay after the 15th, you are LATE and the penalty may be $150

I remember countrywide had something like that, and I think citi also.

Look at your loan online and try to schedule the payment; it should tell you there.

-Peter

darkmeridian said: You can pay by the 14th without any fees or adverse effect on your credit score. Nevertheless, you should pay by the 10th to make sure you do not get dinged with the late fee if the payment is not processed in time. The added few days of float is not worth the late fee and the hit on your credit score.

Being late on your mortgage affects your chances of getting another mortgage even if it is not thirty days late. I know because I tried a refi and the bank said I was late once two years ago so I was a late payer. (I missed it by a business day.) Ever since then, I have paid five days before the late fee day.


thanks i will set up for 10th day.. but how did new lender find out that you were less than 30 days late ?

ptiemann said: some mortgage lenders will charge you a small service fee if you pay after x days.


no fee for me.. i am with penfed

Since it's close to end of year, it's best to make that january 1 due payment before 2009 so that interest can be deducted on this years taxes correct?

Syrex said: Since it's close to end of year, it's best to make that january 1 due payment before 2009 so that interest can be deducted on this years taxes correct?
Good point .. will this help? why wouldnt you want to consider this for 2009 tax year instead of this year? Is it just you get the tax rebate early?

tsanju said: Syrex said: Since it's close to end of year, it's best to make that january 1 due payment before 2009 so that interest can be deducted on this years taxes correct?
Good point .. will this help? why wouldnt you want to consider this for 2009 tax year instead of this year? Is it just you get the tax rebate early?


Depends on your year, depends if u need the write off now or if next year will be better

with the economy next year could be really bad so this year deducting would be far more beneficial PLUS u'll have that deduction amount with you possibly in the form of rebates now...better off than waiting another year and not having it in your hands where it could be accumulating something.

I actually scheduled my payment for the fifteenth of every month. I verified in every possible way that this would result in no late payment fees, even if a weekend pushes the payment to the 17th. My lender, Fidelity Bank, has charged no late payment fees. I think they are so happy to have this set on autopay that they concede the float.

peteypablo said: I actually scheduled my payment for the fifteenth of every month. I verified in every possible way that this would result in no late payment fees, even if a weekend pushes the payment to the 17th. My lender, Fidelity Bank, has charged no late payment fees. I think they are so happy to have this set on autopay that they concede the float.
If it's your lender that you set up the autopay with, it sounds like you're fine, since they should be responsible for pulling the funds from your source account to pay the mortgage. Still, you've allowed yourself no room for error if, for example, your funds aren't available from the source account.

So come to think of it, I think you're taking a risk that isn't worth it. IMO, you should set up the payment so that it posts to your mortgage a few days before the 15th of the month in order to have enough time to make another payment should your regular payment encounter problems. And you should check your mortgage account to make sure the payment posted.

I know that some 3rd party billpay services will not guarantee a payment that is scheduled after the due date, even if you schedule it within the grace period. In other words, if you schedule it for the 1st and the billpay service screws up and fails to make the payment until the 16th, they may reimburse you for the late fees charged by your lender, but if you schedule it for the 14th and the billpay service screws up, you're on your own.

bw4747 said: I know that some 3rd party billpay services will not guarantee a payment that is scheduled after the due date, even if you schedule it within the grace period. In other words, if you schedule it for the 1st and the billpay service screws up and fails to make the payment until the 16th, they may reimburse you for the late fees charged by your lender, but if you schedule it for the 14th and the billpay service screws up, you're on your own.

I always pay around the 10th thanks to the way im paid but bank of america have screwed me twice on not printing and sending the checks quick enough...

As a cashflow management technique, I generally set my mortgage payment to pay a few days early -- around the 27th of the month. Then, whenever I have a temporary hit on my cashflow, I slip the payment back by 2 weeks -- to get to my new payroll cycle. This is a fairly simple and "painless" way to avoid a cash crunch without having to drawn on the HELOC (or a BT).

glxpass said: peteypablo said: I actually scheduled my payment for the fifteenth of every month. I verified in every possible way that this would result in no late payment fees, even if a weekend pushes the payment to the 17th. My lender, Fidelity Bank, has charged no late payment fees. I think they are so happy to have this set on autopay that they concede the float.
If it's your lender that you set up the autopay with, it sounds like you're fine, since they should be responsible for pulling the funds from your source account to pay the mortgage. Still, you've allowed yourself no room for error if, for example, your funds aren't available from the source account.

So come to think of it, I think you're taking a risk that isn't worth it. IMO, you should set up the payment so that it posts to your mortgage a few days before the 15th of the month in order to have enough time to make another payment should your regular payment encounter problems. And you should check your mortgage account to make sure the payment posted.


You know, I would have, but this bank only offered me the option of the 5th or the 15th. I've been doing it for sixteen months now without incident. And the bank I draw from would not bounce a $600 "check" on my account. If they did, by accident, they would credit me any fees I incurred as a result.

peteypablo said: glxpass said: peteypablo said: I actually scheduled my payment for the fifteenth of every month. I verified in every possible way that this would result in no late payment fees, even if a weekend pushes the payment to the 17th. My lender, Fidelity Bank, has charged no late payment fees. I think they are so happy to have this set on autopay that they concede the float.
If it's your lender that you set up the autopay with, it sounds like you're fine, since they should be responsible for pulling the funds from your source account to pay the mortgage. Still, you've allowed yourself no room for error if, for example, your funds aren't available from the source account.

So come to think of it, I think you're taking a risk that isn't worth it. IMO, you should set up the payment so that it posts to your mortgage a few days before the 15th of the month in order to have enough time to make another payment should your regular payment encounter problems. And you should check your mortgage account to make sure the payment posted.


You know, I would have, but this bank only offered me the option of the 5th or the 15th. I've been doing it for sixteen months now without incident. And the bank I draw from would not bounce a $600 "check" on my account. If they did, by accident, they would credit me any fees I incurred as a result.

Good points. And if you've overdraft protection, you're, well... protected. Never mind.



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