Mortgage Payment Question?

Question

If I am late on my payment and they tack on a late fee, can I just pay the regular payment or do I HAVE TO pay the late fee too for it to be accepted? Will they just add it to the end of the loan if I don't pay it, or what? Anyone had experience with this or any mortgage experts out there??!!

Answer 1

If you pay the regular payment and NOT the late fee, your mortgage will be reported to the credit bureaus as late. For every month that the late fee isn't paid, your mortgage will continue to report as late. This will greatly impact your credit history. You would be well-advised to pay the late fee. That fee is actually added to the principal amount of your loan.

Answer 2

If you pay less than the required amount, they don't have to accept your payment at all.

You signed a contract that included a late fee provision. Therefore you are legally obligated to the late fee.

Although the lender could tack the unpaid fee onto the back end of the loan they're under no obligation to do so. This will upset the amortization schedule of your loan, however. A $50 late fee tacked onto the back end could cost you hundreds or even thousands in the long run.

Do the smart thing, pay the late fee!

Answer 3

If you have a good payment history, call the lender. Tell them what happened, and ask if they will waive the late fee.

In most cases, they will.

If not, you are stuck paying the fee.

Answer 4

If it is a one time event, you may be able to get them to drop the penalty, but not if it has happened from time to time. They will always take your money. I don't knoe how they will carry forward the late fee. My best guess is that it will be a balance due on every monthly communication and it could compound with additional late fees..

Answer 5

yes you have to pay the late fee, if you don't, they have the option of not excepting your payment at all.

Answer 6

Most will just add it to the outstanding balance and require it to be paid off before the loan is retired.