Making a late mortgage payment: What to know

Quick insights

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. Your payment is due on the due date. Some loans have a grace period before a late fee is charged, 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. A grace period may allow you to make your payment after the due date without being charged a late fee. Credit-reporting timelines are separate, so review your loan documents and contact your mortgage servicer if you are unsure when a missed payment could be 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 and loan agreement. Review your mortgage documents or contact your lender to confirm the deadline that applies to your loan.

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. Late fees and how payments are applied may depend on your loan terms and servicer policies. Review your mortgage statement or contact your mortgage servicer for details. A late fee itself is separate from credit reporting. If the payment remains unpaid long enough for the lender or servicer to report the delinquency to the credit bureaus, the reported late payment may negatively affect 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”. Forbearance is a temporary payment relief option; you still generally must repay missed amounts, and options vary by investor/agency and your situation. 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

A mortgage payment made after the applicable grace period may result in a late fee. If the payment remains unpaid and the delinquency is reported to the credit bureaus, it may also negatively affect 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.