Missing mortgage payments or paying late is common among many homeowners and this can happen for various reasons. However, many would want to know what to do if your mortgage payment is late.
Making late mortgage payments can have several consequences, including negatively influencing your finances and credit score.
Let’s look at what constitutes late mortgage payment and how it will affect your credit score altogether.
Mortgage Grace Period
One of the first things to understand when discussing what to do if your mortgage payment is late is the mortgage grace period.
The grace period is the timeframe when you can make the payment without attracting the late fees or impacting your credit report. Take note that this grace period varies a lot from loan to loan, so it’s best to consult with your financier to learn more about it. To give you an idea though, it’s mostly between 10 to 15 days.
When is Your Mortgage Payment Considered as Late?
Even if you pay within the grace period, this payment will be considered late. However, the lender can’t report you yet to the credit reporting agencies when you pay during the grace period. The lender can only report you if the payment is at least 30 days late.
Any account with an outstanding balance will always be considered late until the payment is cleared.
Partial Payment vs. No Payment: Which is Better?
Depending on your financial status and available funds, you can sometimes end up paying a partial sum of the required amount. It’s worth noting that the Las Vegas real estate lenders might not be so kind to such payments. This is even worse if you had not negotiated in advance with the lender.
The lenders know that people buying homes through mortgages might try to do this with the hope of avoiding the late fees. However, it can lead to more trouble for the homeowner.
If you find yourself being late for the mortgage payment, consider talking to your lender about restructuring the loan. With good and affordable terms, you should find yourself easily making your mortgage payments once again.