Question:

How long is the typical mortgage grace payment period?

Answer:

The grace payment period for mortgage loans is usually 15 days after the payment is due. Most mortgage loans have the monthly payment due on the 1st of the month. Unless they are Simple Interest Mortgages (SIMs), it is ok to send in the monthly payment so that the lender receives and posts it within the 15th of the month. Until that date no late charges or adverse credit report will be incurred.

When is the grace mortgage payment period over, and what happens if I am late?

If your payment is received after the 15th day when it is due there will be late charges and your next monthly payment must take care of those. However, your payment will not be reported late until you are at least 30 days late with the monthly mortgage payment. 30 days lates affect your mortgage payment history insignificantly. However, 60-, 90- and 120-day late mortgage payments can have a serious negative impact on your credit history and score.

Also, if you are applying for more credit, late mortgage payments within the last 12 months will have to be explained to the lender's satisfaction and may affect your new credit's rates and terms.

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