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Making a late mortgage payment: What to know

Published June 26, 2024| minute read

    Making a late mortgage payment can sometimes feel a little overwhelming — you realize that it’s past your due date and, slowly but surely, the panic begins to set in. Before you get too worried, however, it might be helpful to understand what making a late mortgage payment even means. For example, when exactly is a mortgage payment officially considered late? Let’s dive in and discover what you should know.

    When is a mortgage payment considered late?

    Each month, your monthly mortgage payment will go toward paying off your principal and interest balance. The due date is typically around the beginning of the month. If you miss paying your mortgage on your due date, don’t worry — the mortgage payment may not be considered late just yet (though this may depend on your lender’s policies).

    Is there a mortgage payment grace period?

    In some cases, lenders may allow a certain “grace period” with payments. This is generally a set amount of time before the mortgage payment is officially considered late. The grace period gives the borrower a chance to make the payment before the late payment gets reported. Consult with your lender to see if their policies allow for such a grace period, and how long it is.

    The length of a mortgage payment grace period varies by lender but is usually around 15 days. If your mortgage payment grace period is 15 days, then your mortgage payment would only be considered late after those 15 days.

    When does a late mortgage payment get reported?

    Paying your mortgage late can result in a late fee that will be assessed on your next mortgage statement. Late fees vary. If late fees are not paid up to date, these fees may carry until loan is paid in full. Late fee may also negatively impact your credit score.

    Late mortgage payment forgiveness

    While there may not be “forgiveness” per se, there are some scenarios where borrowers may qualify for mortgage “forbearance”. Mortgage forbearance allows borrowers to temporarily pause or lower their monthly payments if they’re experiencing a financial crisis or other qualifying event. If you’ve made a late payment or are worried about future late payments, speak with your lender to see if there are any potential payment plans available to you.

    In summary

    Late mortgage payments typically result in late fees and a report to major credit bureaus that may negatively impact your credit score. Depending on your lender’s policies, your mortgage payments may have a “grace period” before they’re officially considered late. If you’re looking to learn more about how a late mortgage payment may affect you, do reach out to your lender. This article is for informational purposes only and best advice is to be proactive to not be late on your mortgage. In certain scenarios this may be inevitable but always best to reach out to your mortgage servicer and discuss options

    Late mortgage payments FAQs

    1. How late can you pay your mortgage?

    Late mortgage payments will depend on the lender. Some lenders consider mortgage payments to be late immediately after their due date. On the other hand, some lenders may have a grace period that gives you a few extra days to make the payment before it’s officially considered late.

    2. Do late mortgage payments affect credit score?

    Yes. Late mortgage payments may negatively impact your credit score after they are reported to the three major credit bureaus.

    3. Can I take out a home loan with a late mortgage payment?

    Your ability to take out a home loan will depend on several factors, including your credit score. A late mortgage payment may lower your credit score, which could affect your mortgage eligibility.

    4. Can I refinance my mortgage with late payments?

    You typically should contact your lender if you are looking to refinance, with or without late mortgage payments. Depending on the circumstances, there may be some cases where your lender allows a refinance with late mortgage payments.

    Take the first step and get preapproved.

    Have questions? Connect with a home lending expert today!

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