Can You Change Your Mortgage Due Date?
Learn if and how you can adjust your mortgage due date. Understand the process, lender policies, and financial impacts of making this important change.
It is often possible to change your mortgage due date, though this flexibility largely depends on your specific mortgage lender and their established policies. Many lenders recognize that borrowers’ financial circumstances, such as changes in payday schedules, can make a different due date more manageable. Many institutions offer options to adjust the timing of your monthly mortgage payment.
How Lenders Handle Due Date Changes
Mortgage lenders typically have specific policies regarding requests to change a payment due date, often designed to accommodate common borrower needs. A frequent reason for such a request is to align the mortgage payment with a borrower’s new pay schedule, ensuring funds are available when the payment is due. Lenders may offer a permanent shift in the due date, such as moving it from the 1st to the 15th of the month, or provide alternatives like a bi-weekly payment plan.
To be eligible for a due date change, borrowers generally need to have a history of on-time payments and be current on their mortgage obligations. Lenders often require the loan to be seasoned for a certain period, such as six months to a year, before considering such modifications. Some lenders may only allow a due date change once over the life of the loan, while others might permit it more frequently under specific conditions.
Process for Requesting a Change
When you are ready to request a change to your mortgage due date, the first step involves contacting your mortgage servicer directly. Most lenders provide several avenues for communication, including a dedicated customer service phone line, an online portal, or even the option to send a written letter. It is helpful to have your loan account number readily accessible when initiating contact to ensure a smooth verification process.
During the conversation or within your online request, you will typically need to specify your desired new due date and may be asked to briefly explain the reason for the change. The lender’s representative will then explain their specific process, which may involve completing a formal application or agreement. Be prepared to receive a decision within a few business days to a few weeks, depending on the complexity of the request and the lender’s internal processing times. It is advisable to continue making payments on your original due date until you receive official confirmation of the change.
Impact on Your Mortgage
Changing your mortgage due date can have several financial and logistical implications that borrowers should understand. One primary consideration is the impact on interest accrual, especially if the new due date results in a longer initial payment period between your last payment and the first payment on the new schedule. For example, if you move your due date from the 1st to the 15th, your next payment will cover a period of 45 days instead of the usual 30, meaning more interest will accrue during that extended timeframe. This additional interest for the extended period will typically be included in your first payment on the new due date, making that particular payment slightly higher.
While the total interest paid over the life of the loan typically remains the same, assuming the principal and interest payment amount does not change, understanding this initial adjustment is important. Some lenders may also charge a one-time processing fee for a due date change, which can range from $50 to $100, though many do not. Furthermore, the grace period for late payments, which commonly extends for 10 to 15 days past the due date before late fees are assessed, will also shift to align with your new payment schedule. Ensuring you understand all these factors can help avoid unexpected financial impacts.