Most mortgages are due on the 1st of the month. If received b4 either the 14,15, or 16th 9 depending on the mortgae company ) of the month no late payment with be applied. Good so far. Now, at what point can the mortgage company actually report a late payment to the credit bureau's ?? I asked this because I like to hold my money or mortgage pmt until the last day b4 being accessed a lat fee..i.e..14,15th or 16th. I want to get the most interest as possible on my money. If I continue this pattern of paying my mortgage can they really report anything ?? My assumption is that it would only reported if it was more than 30 days late ? Is this true ?. Today is the 6th of the month. I continue to get calls. i received about 8 calls yesterday and another 3 today. ( I do not answer ) . I know it is from the mortgage company ( caller ID ), wanting to know if I paid the 8-1 payment yet. What can I say to have them to stop calling ? What can they really do ( as far as my credit ) ? Do I just say, stop calling, I will pay within the 30 days, or just say nothing ? Can I asked them to remove my name from their calling list ? Thanks
Your payment is due on the due date, not on the lete date. The lender has every right to call you when your payment is continually late. After all, you're failing to live up to your mortgage contract. You can tell them to stop, but they certainly don't have to. You owe them a lot of money, and your continued late-payments are obviously making them nervous. Your account has most likely been placed in the high-risk department. How much could you really be saving in interest by paying a few days late? All it would take is one or two late fees, and your interest accural would be wiped out. The lender won't report you late on your credit report until you're 30+ days late, based on the payment due date.
Hmmmm...I thought I read somewhere that even if not reporting you to the cra's they will notate you as a 'slow payer' in their internal system, and that will affect your ability to refinance, etc. I am not sure if they can report you to a CRA as a slow payer, although I am sure they could include it in the status/comments section if they felt like it. Anyone else hear anything about this?
Why hold on to the payment and get all the hassle? You don't get an "extra" 15 days of interest by holding on to the mortgage until the 15th of every month. Why? Because your mortgage payments are still 30-31 days apart (pay on the 15th, pay on the 14th, pay on the 15th, etc., etc.) Its the same as picking any other day of the month and paying it thirty to thirty-one days later. GaryL
Not really. If the poster deposits a paycheck on the forst of every month, they'd earn interet on that money, instead of it getting immediately paid out to the mtg. company. Your assumption only works if there's a fairly consistent balance in the account. Still, the late payment thing is a wste of time, considering the hassle involved.
My mortgage payment is due the first with 15 days grace period. I usually take it to the local office and they will fed-ex to corporate at no cost. I pay mine different days, but never on the first. I have taken it as late as the 15th. I have never been called, marked late nor charged any late fees. I guess it has to do with who your mortgage co is. Michelle
Re: Re: Mortgage Pmt Mortgage lenders keep internal records of your payment history. Continually paying late can cause them to treat you in a negative way if you want to refinance, need to enter a hardship program, etc. You never know when you're going to need your mortgage lender's help. It's the last bill that you want to pay late on a regular basis.
Your mortgage is due on the 1st of each month. Yes, you have a grace period, but technically, it's due on the 1st and it's late if paid after the first. And, technically, the lender can legitimately report you as a 30-day late when it's late by ONE HOUR past the due date. Feel free to search the archives on this board. It's been discussed so many times, it's not worth repeating. js2
Re: Re: Mortgage Pmt There are several points here. First, I'm sure you're not coming out ahead by getting the extra interest on your money. Why? Because you're paying the extra days interest on the mortgage. In other words, if your payment posts on the first, your balance is reduced then, and the interest you are accruing is on a lower balance. So, if you keep the money for, say, 10 days, you're getting interest for those 10 days at what--1%??? But you're paying an extra 10 days of interest at whatever your mortgage is--5% or more. So you're actually losing 4% (or whatever that difference is) for the 10 days. Mortgages aren't like credit cards. You may have a grace period to pay, but interest accrues every day. That's why when you get a payoff amount it is only valid for a few days. That's also why most refinances will have either a small credit or debit balance at closing--they may have gotten the payoff amount for an approximate date. In fact, if you carry a balance on credit cards it works the same way--you only have the grace period if you pay the entire balance. The next fact is that you're sending a check every month. As someone mentioned, they've probably pegged you as a slow pay. This doesn't mean they're reporting lates to the credit bureaus, it just means that they aren't sure each month that they'll get a check, based on your record of being late. They assume that you're having financial trouble and can't pay when it is due. One way around this is to set up an automatic payment. Most mortgage companies will let you pick a date up to around the tenth of the month without penalty. They don't insist on the first because if you have an automatic payment (like a retirement check) due on the first and there is a problem, it could be a day or so. I have mine set up to debit on the 6th of the month. They have a known quantity--they'll get my payment on the sixth, I have a known quantity--deduct it out of my checkbook before the 5th, and everyone is happy. I've never had a call, they know when they'll get their money, I have no late pays, and I could refinance with them in an instant if I wanted to.
Re: Re: Re: Mortgage Pmt I just refinanced in March of this year! It took less than one week. I have been with the same mortgage co for many years. They send me info each month on offers for preferred status. So, the moral of the story is not every mortgage company is the same. You can not lump every individual together. Michelle
But if your mortgage interest is say 6% and your checking account is only 1% then I'd pay on the mortgage first as I wouldn't be getting much interest off it sitting for 2 weeks in my checking account. It is better I feel to pay the mortgage on time instead of holding onto it. Plus pay more on the principal each month and save even more interest.
Re: Re: Re: Mortgage Pmt I also just closed on my refinance (streamline with current lender) and am saving a ton of money. Went from 8.875 to 5.75% plus cut my term down and cut off 2 yrs of payments. Since my payments are on time every month they had no troubles refinancing us. I even got rid of darn PMI with the refinance and am saving 130/mo on my payments which I can sock to other bills. It does pay to be on time Best thing is to pay as much as you can as early as you can...I even add more to my payment to cut down the principal too.
Re: Re: Re: Mortgage Pmt Hedwig, Those are my thoughts EXACTLY. With interest accruing daily, I would almost be willing to bet that if you paid 14 days late starting with the very 1st payment on your mortgage, AND you did that EVERY single month for the life of the loan, I just bet that you might be able to turn your 30 yr mortgage into like a 31 or 32 year mortgage with all the extra interest that accrues for that extra 14 days every month. It'd take a bunch of work to prove how much extra you'd pay, but I'd be willing to bet that's the case.
Re: Re: Re: Mortgage Pmt Paying extra on your principal is not a good thing unless you have no other debts and you have at least a year's worth of expenses in liquid, secure assets. If you lose a job or have a medical emergency, the equity won't feed your family or pay your bills. You won't be able to get a mortgage to get the money out, and in some cases you could even lose your home. Besides, if you have any other debt, the money should be going there. Your mortgage is probably a lower interest rate and is tax deductible, making the net cost even less. So don't pay even one penny extra on your mortgage if you have another place to put it. Make sure your money is where you can get it. Check out ricedelman.com and read some of his stuff.
Re: Re: Re: Mortgage Pmt faztcobra, I don't think they'd extend the life of the loan, you'd just be shocked at the bill you get for the 360th payment, which will be the remaining balance of the loan.
Re: Re: Re: Mortgage Pmt I know we are past the original question, but here's my input. My old mortgage company, three mortgage companies ago, because they sell, and sell, and sell their accounts, used an internal system, if your payment posted from the 1st to the 5th, you had a -1- From the 6th to the 10th, -2-, and so on. This was back before automatic payments became so widely used and routine and the actual mail time was involved. They gave you the five days to keep you with the "preferred" internal score of -1-. The later in the month, the higher the score. I asked, because I had been mailing my payments before the 1st on some months, and right on the 1st others, and it did make a difference on how they viewed us as payors.
Re: Re: Re: Mortgage Pmt Interesting information. I wonder if they still do this? I could easily change my draft date from the 6th to the 5th or 4th.
Re: Re: Re: Mortgage Pmt But if you have equity in your home you can always get a HELOC off it if need be. I would much rather pay off my mortgage early at 5.75% and cut the term from 20 to 10 yrs then put the money into an account that earns a measly 1% or 2%. When you have no other debts (no CC's-don't ever carrry balances) it's where I put my money.
Re: Re: Re: Mortgage Pmt Trust me--you won't get a HELOC if you've lost your job, have a major illness with no hope of return to work, etc. They want to see income to repay the loan. Also, over the long term, investments will outperform the interest you're paying on the loan. There are a lot of people (including several I know personally) who have learned this the hard way. One had family who bailed him out and he kept the house. The other couple had to sell their house, when the market was down, and do so quickly. So they got maybe 85% of the value they would have gotten if they could have held on. It was also a crisis to have to move when they weren't sure if the husband was going to make it or not. Now he was also in unfamiliar surroundings. They had always been the "have no debt" people. Fortunately, he's recovered. He now has a mortgage and investments and a year's worth of secure, liquid funds. And he's teaching his children the same thing. He said he wouldn't wish that situation on anyone, and will never be "house poor" again. He kept thinking, like you, that he could take the equity out. By the time he found out he couldn't, it was too late.
