my mortgage company (wells fargo) says my payments are due on the 1st but are not late until the 15th? lets say I paid my mortgage on the 31st of may or the 14th of june, would there be any difference in the dispursal of the payment? mortgage/interest ratio?
2007-05-29 09:08:32 · 5 answers · asked by Drew W 2 in Business & Finance ➔ Renting & Real Estate
No, in most cases in the US, mortgage interest is calculated based on the date the payment is due, not when it's received. So, most likely it does not make any difference if they receive your payment on May 31st or June 14th. You just need to make sure that they do receive on or before 15th, as late fees could be as much as 5% of the amount due.
I have not yet seen a mortgage loan in the US when interest would be calculated based on when the payment is received.
So, even if they get the payment on June 14th, they will calculate the interest and principal as if they received it on June 1st. Exception to this rule is when you pay the loan in full, then they actually calculate the interest on daily basis up until the day they receive the pay off funds.
*****
The mortgage payment is not reported late on your credit report if it is less than 30 days late, so even if you paid on 17th (not that I would recommend it) and had late fee assessed, nothing gets reported to the credit bureau.
2007-05-29 09:34:33 · answer #1 · answered by Alexander K 3 · 1⤊ 0⤋
Hmmmm I wouldn't suggest paying your June 1st mortgage payment before the date.... they can apply that to your mortgage and still ask for your June 1st payment, especially if you didn't not it on your check or money order.
You can actually note on your mortgage payments of the money you want to allocate towards your interest or principle.... Lets say you mail in $400 extra.
I sometimes tell my clients to double up on their mortgage payment at least once a year to help get the mortgage balance down and cut down on the life of interest payments.
Hope that helps!
2007-05-29 09:16:09 · answer #2 · answered by Deme21 2 · 0⤊ 2⤋
My experience on my mortgage payments (I have made a lot of them). There would be no difference in your balance between those two alternatives. No advantage or disadvantage.
Except for you credit score.
Your payment is probably actually late on the 6th but there is no penalty until the 15th.
That is an industry standard.
They report your payments as late to your credit report if they are received after the 5th.
2007-05-29 09:28:53 · answer #3 · answered by glenn 7 · 0⤊ 4⤋
It takes ten seconds for Yahoo Answers page to open for me to be able to click on [add your answer] button. does this mean my laptop is slow?
2016-08-24 04:02:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Anything that changes the amount of principal owed, affects the equity. ~
2007-05-29 09:16:47 · answer #5 · answered by Anonymous · 0⤊ 1⤋