If I pay my mortgage late, but under 30 days, will that affect my credit?

Question

Unfortunately, I got into the habit of paying later in the month and haven't been able to get back to paying on the 1st of the month. I asked someone from the mortgage company, when I called to pay one month, and she said as long as it is under 30 days, it wouldn't get reported as late. But . . . my parents said when I go to buy another house, the lenders will be able to see that I had been less than 30 days late, even though it doesn't show on my credit report!
Thanks for the help.

Answer 1

I've worked in mortgage lending and servicing for more than 20 years and I can tell you for a fact that unless you are more than 30 days past due your loan is not reported delinquent. All credit reporting is done automatically and the tapes usually run about the 5th day of the month.

Most deeds of trust contain a clause that says you will not be charged a late fee until 15 day AFTER the due date which means they will not charge you a late fee until the evening of the 16th (unless it falls on a weekend, then it would be the following business day).

Future lenders have no way of viewing your previous payment dates and rely totally upon credit as reported by your lender.

You are, however, paying a lot in late fees that you could better direct to principal reduction.

Answer 2

From my experiance, I think your parents may be wrong. The credit reporting agencies do not have the resources to monitor every credit transaction. Some things get reported automatically, such as loan applications and such, but the agencies usually need to have the lenders report problems.

If your lender has a policy not to report late payments under 30 days, then you are probablay all right.

The 30 days does sound like a long time, so, I would still be concerned, if I were you, and try to get back on schedule. Its best if you call back the mortgage company and get a conformation of what you've been told. Be sure to get the name of who told you this.

Even if someone did tell you it's OK, the policy may change, and they are under no obligation to tell you. If your contract specifies a payment due date, and a late payment date, they could still hold you to that. Chronic late payments CAN be reported and that WILL affect your credit rating.

Answer 3

Lenders will only be able to see exactally what your credit shows.. if your payment is past due but under 30 days it will not report to the credit bureau as late. It will therefore not have a negative effect on your credit. What you need to do is find a way to get back on track of paying on time because your lender is probably charging you a late fee each month which in the long run will really cost you a lot of money. Perhaps you could sell something or borrow some cash from a family member. Hope this helps you.. good luck.

Answer 4

A mortgage payment has a grace period of 15 days. Due on the 1st, and if paid after the 15th a late fee is incurred. A 30 day late will affect your credit. Lenders pull a credit report that shows your payment history, it looks something like this

JOE BLOW SAVINGS & LOAN MTG 360/350 100000/99666
1111111111

The 1 means paid on time ( 360 month term, 10 months old would rate 9-10 payments you made), if it had a 2 it would mean it was paid after the grace period but before being 30 days late. They dont like to see the 2, but it will not result in you being declined on a mortgage loan. They cannot counter an application based on a 15 day late payment. Most banks will try to change your payment due date if you express a hardship. If you are paid on the 15th of each month, your bank might grant a change to your payment being due the 15th, and late after the 30th,

Answer 5

Late Mortgage Payment

Answer 6

Hi fitgalmel,

No, you are not late until after the first of the following month if that's the payment schedule you are on with your servicer/lender.

However, the deferred interest will be tacked on the back side of the loan. think about how much of your mortgage payment as of now goes towards principle, and how much goes towards interest.

For example:

if $1000.00 is going towards interest on a new loan, then divide $1000.00 by 30/31 days and that's the amount of interest that's being applied for going late.
IE: For every day you go past the first you will be paying an additional $33.33, on the above scenario.
At the end right before you truly go late, you will have paid almost $900.00 in additional interest, roughly.

Good Luck,
~T

Answer 7

It is up to the mortgage company I believe. Not positive. Companies have to report late payments to the credit report agencies, and many do not unless it is over 30 days.

If they told you it will not be reported if not over 30 days, you should be OK.

To be safe, it is a good idea to monitor your credit and dispute things you don't agree with or don't seem right. Check http://www.annualcreditreport.com/ This is a 100% free site set up by the government and the 3 big credit bureaus.

Answer 8

This Site Might Help You.

RE:
If I pay my mortgage late, but under 30 days, will that affect my credit?
Unfortunately, I got into the habit of paying later in the month and haven't been able to get back to paying on the 1st of the month. I asked someone from the mortgage company, when I called to pay one month, and she said as long as it is under 30 days, it wouldn't get reported as late. ...

Answer 9

no, it wont, they only report you as late if you pay after 30 days. Aside from that, if you are paying with in the grace period, you are not considered late at all. Most mortgage companies give a 15 day grace period, so if you pay on the 16th day, they consider you late and charge a late fee, but don't report it on you credit.

Answer 10

No. While you main incur a late fee from the mortgage company, it will not be reported to the credit bureaus if you are under 30 days.