What actually happens when your mortgage payment is late? The answer can vary from person to person based on your financial history, your loan’s specific rules and how late your payment is.
We’ll go through the entire late mortgage payment timeline in detail — including the grace period — so you know your options if you’ve fallen behind on mortgage payments.
Paying your mortgage on time every month is crucial for maintaining good credit and avoiding fees or foreclosure. But life happens, and you may occasionally find yourself a couple days behind on your payment What are the consequences of a payment that’s just 2 days late? Let’s take a close look
When Is A Mortgage Payment Officially Late?
Most mortgage payments are due on the 1st of the month. Technically the payment is late if not received on the due date. However most lenders offer a grace period before imposing late fees or other penalties.
The typical grace period is 15 days. That means for a payment due the 1st, you can generally submit it by the 16th with no negative repercussions. Payments made from the 2nd through the 15th are not considered late by the lender.
What Happens At 2 Days Late?
If you pay your mortgage 2 days after the due date, you are still well within the 15 day grace period offered by most lenders. So there will be no late fees assessed or other consequences at 2 days late.
The lender likely will not even contact you about a payment 2 days late. There is no reason to worry if you miss the official due date by just a couple days. As long as you pay within 15 days, you remain in good standing.
When Are Late Fees Charged On A Mortgage?
Late fees are generally charged only if the lender has not received the full monthly payment after the grace period ends. The fee is typically 4-5% of the overdue principal and interest.
For example, if your monthly mortgage payment is $2,000, the late fee could be $80 – $100. This penalty can add up quickly if you continue falling behind on payments.
Most lenders will also report your account as 30 days past due to credit bureaus once the grace period has ended. This can damage your credit score.
Does The Mortgage Due Date Matter?
Whether your mortgage is technically due on the 1st or 15th typically does not matter. The key is submitting the payment before the grace period expires, regardless of what your official due date is.
As long as the lender receives the full monthly payment within 15 days after the due date, there are no negative effects. Paying on the 1st vs. 15th makes no difference in terms of penalties.
When Would A 2 Day Delay Be Reported To Credit Bureaus?
The lender can report your mortgage as late to the credit bureaus once it becomes 30 days past due. A payment 2 days late does not meet that threshold, so it will not appear on your credit report.
Even if you miss the due date, as long as you make the payment within 15 days, it is not considered late by the lender or credit bureaus. There is no damage to your credit from a 2 day delay.
What To Do If You’ll Be 2 Days Late
If you realize your mortgage payment will be 2 days late, the best practice is to contact your lender proactively. Explain the situation and when you will submit the payment.
The lender may be able to note your account so the system does not automatically assess a late fee when the due date passes. This communication can prevent surprises down the road.
As long as you eventually pay within the grace period, a 2 day delay should not cause issues. But looping in the lender shows good faith and allows them to document why the payment was late.
Can You Pay Mortgage A Few Days Late?
Yes, paying your mortgage a few days late is generally fine, as long as you submit the payment within the 15 day grace period offered by most lenders.
One or two days late does not result in any fees or credit impacts. Just be sure to pay the full monthly amount before the grace period expires to avoid penalties. Communicate with your lender so they understand the situation.
A small delay here or there is not disastrous. The key is avoiding missed payments beyond the grace period, which can spur fees, credit damage, and foreclosure over time. Stay in close contact with your lender if you foresee any issues making payments on time.
Key Takeaways
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Mortgage payments are usually due the 1st of the month but a 15 day grace period is common.
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Payments made up to 15 days late are not penalized or reported to credit bureaus.
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At 2 days late, you are still well within the grace period so there are no consequences.
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Late fees are charged only if the full payment is not received after 15 days.
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Contact your lender proactively if you know a payment will be couple days behind.
As long as you pay within the 15 day grace period, a mortgage payment that is 2 days late does not result in any fees or credit impacts. However, repeatedly paying late can cause issues over time, so try to pay on the due date whenever possible. Communicate with your lender and take advantage of the grace period if needed.
Mortgage forbearance
Mortgage forbearance is an option that allows you to temporarily pause or lower your mortgage payments for a set time period if you’re experiencing financial hardship.
The terms of these agreements vary — however, in most cases, after your forbearance period ends, you must repay all missed payments with interest. You can pay in a lump sum, but your lender may give you the option to enter into a repayment plan by adding a portion of your past-due balance to each of your monthly payments. In some cases, you can resume your regular mortgage payments and pay off your missed payments at the end of your loan term.
Housing counseling
You can reach out to a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD) if you’re struggling to pay your mortgage and want to avoid foreclosure.
The housing counselor will help you work with your mortgage lender, and they may even be able to contact the mortgage company on your behalf.
When is A Mortgage Payment Considered Late
FAQ
Will a 2 day late payment affect credit score?
How late can I be on a mortgage payment?
What happens if you pay your loan 2 days late?
A late payment is typically not reported to the credit bureaus and your score is not affected if paid before that 30 day window is up. Consequences of a late payment include: A late fee.
How many days past due can your mortgage be?
15 days past due
If you can’t make your mortgage payment on the first of the month, most lenders will give you a grace period of 15 days. Once 15 days have passed, your lender will typically charge a late fee. You can find out what this late fee will be by looking at your mortgage documents.
What happens if a mortgage payment is late?
Although your payment is technically late at one day past-due, most mortgage servicers won’t give you a late payment penalty after only a day because of the mortgage grace period — this is the set time after your due date during which you can still make a payment without incurring a penalty. For most mortgages, the grace period is 15 calendar days.
What happens if you make a mortgage payment over 30 days?
The first time you make a payment over 30 days late on a mortgage, your credit score (sometimes called a FICO score) could drop 50 to 100 points. It’s easy to fall into a habit of making late mortgage payments because mortgage payments are most people’s largest monthly expense. Falling behind once makes it difficult to get back on track.
How much does it cost to pay a mortgage late?
The late fees are usually a percentage of your monthly payment. For example, say your monthly mortgage payment is $1,200 and there is a 5% late payment penalty. If you make a late payment, you’ll be charged an additional $60. For most people, $60 isn’t small change.
How long does a late mortgage payment stay on your credit report?
A payment must be at least 30 days late for the lender to report it. How many points your credit drops after a missed payment varies; the stronger your credit score is, the steeper the decline you’ll see. In addition, a late mortgage payment could stay on your credit report for seven years.
What happens if I can’t make a mortgage payment?
If you can’t make your mortgage payment on the first of the month, most lenders will give you a grace period of 15 days. Once 15 days have passed, your lender will typically charge a late fee. You can find out what this late fee will be by looking at your mortgage documents. What happens if a mortgage payment falls on weekend?
What should I do if I’m Late on a mortgage payment?
Contact your loan servicer as soon as possible if you know you’re going to be late or have trouble making a mortgage payment. They may be able to help you work out alternative arrangements, such as a payment plan or refinance. You want to avoid making a late payment because it can have a far-reaching impact beyond your mortgage.