R there any problems for me in regularly paying my mortgage just before the "payment is late" date?

Question

Mortgage is "due" on the first of each month. I don't have cash flow to pay it until the 12th of each month. Assuming that I am never later than that, I always beat the late fee assessment which would come on payments after the 15th. Does perpetually paying in this fashion have any negatives as far as credit, etc.? (Suppose I did it like this every month for a 30 year mortgage . . .)

Answer 1

As long as it's not more than 30 days late, credit bureaus won't even know it was late. You will pay a penalty, but it won't be reported to the credit bureaus until after 30 days of lateness.

Answer 2

So -- what you are really asking is "Is it a problem if I make my mortgage payment during the 'Not Late Yet' period."

The answer is no -- it isn't a problem. The bank won't report you for being late if you aren't. You may want to check with them to make sure that there is no problem. You can even ask them about changing the due date.

Answer 3

As far as your credit rating goes, no there should not be a problem. Since this is a mortgage, not rent, then you are getting hit with extra interest charges (interest accumulates every day). Check with your lender to see what the impact of this is on your loan.

Answer 4

Maybe you should work a partime job for a while to acquire enough money to pay your mortgage on the 1st of the month. If you ever need another loan, some lenders are critical of pay history & this could be a problem in securing such a loan as your pay history as it stands seems to show a bit of being unresponsible. I hope this helps...

Answer 5

You should be good because payment was less than 30 days late

Answer 6

It won't affect your credit because it is not late.