Buyer Tips and Advice

What happens when I’m late on a mortgage payment?

What happens when you make a late mortgage payment

What happens when you are late on a mortgage payment? It depends on how late.

You are less than 30 days late on a mortgage payment

The late charge provision in a mortgage calls for an additional charge if you are late on your mortgage payment beyond the grace period.

The grace period on a mortgage payment varies based on the policy of your lender, but three minimum grace period on a one-to-four unit, owner-occupied residential property is is ten days after the due date.

The amount of a late charge fee varies by loan type and lender.  For example, VA loans limit the late charge to 4% of the payment.  Conventional loans can have a fee as high as 6% of the payment due.

How can you  verify the length of the grace period and late charge amount

To verify the length of the grace period and the late charge you can

  • Check your mortgage statement. It will tell show you the date when you payment is considered late as well as the amount you can expect to pay
  • Check the “Note” which is part of the final loan documents you signed.  It will show also show the number of days of grace period and late fee charge percentage

What if you are more than 30 days late on a mortgage payment?

Lenders have the right to report the late payments to credit bureaus if you do not pay within 30 days of the due date.
This is when your credit history and credit scores will be affected.
Additional or rolling late payments will be reported individually to the credit bureaus as well.

Make sure that your lender gets your payment before the end of the grace period.
Don’t risk making a late payment on your mortgage and assessing a late charge fee or a bad mark on your credit report.

Let me know if you have any questions about this or any other mortgage related topic.
Send me an email
Give me a call – (858) 3-LOAN-SD
Text LOANINFO to 44222
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