When Is the Last Day to Pay Your Mortgage?

Timely mortgage payments are a significant responsibility for homeowners, impacting their financial health and homeownership stability. Understanding payment deadlines is important for managing this commitment effectively and avoiding potential fees and negative consequences.

Understanding Your Mortgage Due Date

Mortgage payments have a specific due date, usually the first day of each month, as outlined in the mortgage agreement. The first payment for new mortgages is typically due on the first day of the second month after closing. This means payments are made “in arrears,” covering interest from the previous month.

Grace Periods and Late Payment Fees

While the contractual due date is usually the first of the month, most mortgage lenders offer a grace period, which is an additional number of days during which a payment can be made without incurring a late fee. This grace period commonly ranges from 10 to 15 days. If a payment is submitted within this window, it is not considered late, and no penalty is applied.

Once the grace period concludes, a mortgage payment is officially deemed late, and a late fee is assessed. These fees are typically calculated as a percentage of the overdue payment amount, often ranging from 4% to 5% of the principal and interest portion of the payment. For example, on a $1,200 mortgage payment, a 3% late fee would add an extra $36. Some lenders may also charge a flat fee, and the specific amount or percentage is detailed in the loan documents.

Further Consequences of Missed Payments

Missing payments beyond the grace period can lead to escalating consequences. If a payment is 30 days past its due date, lenders report the delinquency to credit bureaus, which can negatively affect a homeowner’s credit score. A single late payment can remain on a credit report for up to seven years, and its impact on the credit score can be significant, especially for those with higher scores. The negative effect on credit can make it harder to obtain new loans or credit in the future.

After 60 to 90 days of missed payments, the lender may send a formal notice of default. Federal law requires servicers to attempt contact and assign a staff member to the file if payments are 45 days late, informing the homeowner of available assistance options. If payments remain unpaid, lenders can initiate foreclosure proceedings. Foreclosure typically begins after 120 days of delinquency, though this timeline can vary.

Locating Your Mortgage Payment Information

Homeowners can find details about their mortgage due date, grace period, and late fees in their original loan documents. The mortgage agreement and promissory note, provided at closing, outline these terms and any penalties. Monthly mortgage statements also summarize loan activity, including due dates and fees, and are accessible online or via mail. If information is unclear, contact your mortgage servicer directly.