When Is Your Mortgage Due? Dates, Fees, and Payments

A mortgage payment is a significant financial commitment for homeowners, representing the repayment of borrowed funds and interest. Understanding mortgage terms, including due dates, potential fees, and payment methods, helps ensure timely payments and avoids unnecessary costs.

Understanding Your Mortgage Due Date

Mortgage payments are typically due on the first day of each month. However, the initial payment after closing may follow a different schedule, as payments are generally made in arrears, covering interest for the previous month.

Homeowners can confirm their mortgage due date by reviewing loan documents like the promissory note and closing disclosure. Monthly mortgage statements and the lender’s online portal also provide this information.

Most mortgage lenders offer a “grace period,” a short window after the due date when a payment can be made without a late fee. This period typically ranges from 10 to 15 days. While it provides a buffer, the payment is still due on the original date. Homeowners should check their loan documents for the exact length of their grace period.

Consequences of Missing the Due Date

Failure to make a mortgage payment by the end of the grace period can lead to financial penalties. Lenders typically assess a late fee once the grace period expires. These fees are often calculated as a percentage of the overdue payment, commonly ranging from 3% to 6% of the monthly principal and interest payment, or as a flat fee. For example, a 5% late fee on a $2,200 mortgage payment would add an extra $110 to the amount due.

Beyond immediate fees, missing a mortgage payment can negatively affect a homeowner’s credit score. While late fees may apply immediately after the grace period, lenders usually report a payment as “late” to credit bureaus only after it is 30 days past the due date. A single late payment can remain on a credit report for up to seven years and can cause a significant drop in credit score, potentially by 50 points or more on average. The impact on credit history becomes more severe the longer a payment remains delinquent.

If payments become severely delinquent, lenders may initiate further collection actions. After 45 days late, federal law often requires the servicer to make contact to discuss options. If payments continue to be missed, typically after 90 days, the lender may send a notice of default and could eventually begin foreclosure proceedings. Foreclosure is a serious consequence that can remain on a credit report for up to seven years and significantly impact future borrowing ability.

Managing Your Mortgage Payments

Homeowners have various methods available for making mortgage payments. Many lenders offer online payment portals, allowing for convenient and trackable transactions. Payments can also typically be made by mail, though this method requires careful timing to ensure the payment is received before the grace period ends. Other options may include paying over the phone, sometimes through an automated system or with a live representative, or in person at a lender’s branch.

Setting up automatic payments (autopay) from a bank account is a common strategy to help avoid missed payments. This ensures the payment is automatically withdrawn on the scheduled due date each month. Autopay can provide peace of mind by eliminating the need to remember manual payment dates.

Some homeowners may wish to change their mortgage due date to better align with their personal finances, such as a payday. While this is sometimes possible, it is typically at the lender’s discretion and may involve specific requirements or fees. Homeowners interested in adjusting their due date should contact their lender directly to inquire about this option and understand any implications, such as potentially making two payments close together during the transition.