Question:

Can I pay during the 10 day grace period on mortgage?

Answer:

Technically, it won't hurt your mortgage if your payment arrives within the grace period - whether a 10 day grace period on the mortgage, or 15, normally there is some buffer allowing borrowers to be slightly late without this ever getting on their credit reports.

However, paying during the 10 day grace period on a simple interest mortgage can incur huge interest charges due with the monthly payment. If you are paying around $30 interest/day being 10 days late will result in $300 due with the monthly payment.

The 10 day grace period on mortgage is not always a free ride. Even if no late payment will be reported to the credit bureau, late charges will apply and in the case of simple interest mortgages, one third of the monthly payment will be due on top of your regular mortgage payment. If you don't pay it, additional interest will start accruing.

If you tend to procrastinate with your mortgage payment, make sure you didn't get a SIM. Paying the SIM during the 10 day grace period on the mortgage may result of later repayment of the loan and thousands of additional interest.

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