paying mortgage during grace period - Credit Repair Forum from Creditnet
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  1. #1
    edoggie is offline Senior Member
    Join Date
    Sep 2002
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    600

    paying mortgage during grace period

    All,

    Please list your experiences:

    I know everyone has different mortgage companies so I'd like to know have you ever paid your mortgage not on the 1st but sometime within the 15 day grace period.

    Did it affect you negatively in anyway ? Did they say something bad to you when you tried to refinance ? It won't affect you credit rating as long as you pay within the grace period but I'm curious how lenders look upon you if you didn't pay on by the due date but within the grace period. Thanks.
    "This is an attempt to extract money from you legally notwithstanding. Any information obtained from you will be utilized to legalize our extortion"

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  3. #2
    lakpr is offline Senior Member
    Join Date
    Dec 2002
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    461

    Re: paying mortgage during grace period

    I always paid my mortgage on the 10th of the month -- I get paid on 1st by direct deposit, so scheduled an automatic payment due on 10th in my BillPay. I had Bank of America for 16 months, then refinanced, now with Countrywide ... never had a problem with refinance, I did not get any questions or attitude from any CSR during refinance.
    -- lakpr
    :)

  4. #3
    Hedwig is offline Senior Member
    Join Date
    Jan 2003
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    4,928

    Re: paying mortgage during grace period

    I have mine debited from my checking account on the 6th of the month and never had any problems. I think especially if it's automatic debit, they don't have a problem. They told me it could be any date between the first and tenth.
    The Answer is 42!!

  5. #4
    420greg is offline Senior Member
    Join Date
    Oct 2003
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    307

    Re: paying mortgage during grace period

    I pay mine on the 15th of each month using Yahoo! bill-pay.

    If the payment is the same if you pay it on the 1st or the 15th, then pay it on the 15th.

    If you mortgage payment is $1500 a month, that is $1500 that is making interest for you for 15 days every month or 180 days a year you have a higher balance earning interest.

    With a $1500 mortgage payment that is $18000 a year in year account for 180 extra days.

    If your checking or savings pays even 2% that is $360 a year, plus the compound, so probably more like $400 a year I make by paying on the 15th instead of the 1st. I have been doing this for 3 years and it has never had a negative effect on my scores.

    I do this with all of my bills. I pay CC or things that compound daily ASAP, but stuff like utilities and installment accounts I pay them on the due date.

    Always hold your money as long as you can.
    -------------------------------
    18 points to 740 & 0% Auto
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  6. #5
    edoggie is offline Senior Member
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    Sep 2002
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    600

    Re: paying mortgage during grace period

    420greg ... excellent advice. I never thought about that way.
    "This is an attempt to extract money from you legally notwithstanding. Any information obtained from you will be utilized to legalize our extortion"

  7. #6
    420greg is offline Senior Member
    Join Date
    Oct 2003
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    307

    Re: Re: paying mortgage during grace period

    Originally posted by edoggie
    420greg ... excellent advice. I never thought about that way.
    I have my moments. :)
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    18 points to 740 & 0% Auto
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  8. #7
    lakpr is offline Senior Member
    Join Date
    Dec 2002
    Posts
    461

    Re: paying mortgage during grace period

    While I see the sense in Greg's advice, I have to disagree a little bit. If you pay regularly on the 15th, and god forbid, if your payment reaches the lender a day late for whatever reason, even if you are using BillPay, there will be a lot of repercussions ... you might get slapped with a penalty of $75 (as specified in my mortgage terms) or worse, wiping out any puny amount of interest that your money would have earned in saving account. Plus, if the lender reports you to the bureaus, you get jacked on credit cards, insurance rates, practically everything else.

    To me, that kind of a risk is not worth taking. I always leave about 3 business days buffer to pay any bill, not just mortgage. If the payment is due on the 15th, I schedule it for 10th (allowing for a weekend in between); if 25th, I schedule for 20th. When everything in your life is governed by your credit reports, I get zealous in protecting my good name and paying my bills earlier than they are due.

    YMMV.
    -- lakpr
    :)

  9. #8
    420greg is offline Senior Member
    Join Date
    Oct 2003
    Posts
    307

    Re: paying mortgage during grace period

    Yahoo! bill pay actually starts the payment process about the 10th or 11th each month (it will be marked in progress) and the lender get a electronic tickler that payment is on the way.

    My bank balance stays the same until midnight on the 15th, but my available balance goes down on about the 12th. Interest is paid on your normal balance, not your available.

    I am going on my 4th year of using some type of electronic bill pay and I have never had an issue.

    If you pay your mortgage by check I would not recommended this method, like it says in the post above, it can come back and bite you in the ass if you are not careful.

    If you pay your mortgage by check in person each month on the 15th, you can earn interest on the money for another 3 to 10 days while you wait for the check to clear.

    This also helps you average daily balance, which my CU uses for loan consideration.
    -------------------------------
    18 points to 740 & 0% Auto
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