Late Payment Mortgage - If you have gone 30 days late on your mortgage your lender will report the late to the credit bureaus. A 30 day late will also make impossible to refinance with a conforming mortgage loan program. If you think you are going to be late the best thing you can do is contact your mortgage holder, they will generally work out a payment plan with you.
Having late mortgage payments will not only affect your ability to refinance your home and buy a new home, but it will seriously affect your credit score and make it hard on you to obtain all different types of financing. Late mortgage payments could cause you to have to pay high rates for auto insurance, homeowners insurance, auto loans, etc... or even worse you may not qualify at all for other types of financing. Therefore, it is very important to not have any late payments on your mortgage.
Make sure your late payments don't exceed 60 days or worse, 90 days. These dramatically have a negative impact on your creditworthiness and effect the interest rate that banks will offer you for credit.
Late Mortgage Payments - Late mortgage payments can and do happen to the best of us, and you can refinance even with a late payment on your credit report.
The first late payment which is generally recorded is when you are 30 days behind. If you feel that you may be late on your next mortgage payment, call us immediately at 415-617-5448 to discuss your options before its too late.
One of the biggest mistakes consumers make when they start to get behind on their mortgage is that they wait to long to start looking for help. They wait until they are 90+ days late on their mortgage or they wait until their home is in pre-foreclosure or foreclosure before they start looking at what options they have to save their homes. By this time, the number of choices they have available to them significantly declines. Therefore, contact a mortgage professional quickly when you realize you are starting to fall behind or you are not going to be able to make a mortgage payment. The longer you wait, the more you decrease your chances of being helped.
Any payments late on any of your debts is a bad thing. Making a late payment on your mortgage is the worst. If you have to make a late payment make sure your mortgage is the first bill you pay on time. Then make the payments on your other bills by paying the minimum. Call me at 415-617-5448 to discuss you options. There are solutions that we can come up with together.
If you contact your mortgage lender as soon as you realize you may be in trouble they most likely will be flexible with you. Do not wait until the 60,90 or 120 late mark to talk to your lender.
If you get to 60 days late or behind on your mortgage payments, your options are significatly less than before. Depending on your lender and the terms of your loan, the loan servicer may initiate foreclosure as early as 60 days late.
Late fees - "What are late fees? And how do they affect me?"
Late fees, and late mortgage payments in general, can be far more expensive than your truth in lending statement may suggest. The impact on your credit of just one late mortgage payment can be worse than several late payments on smaller tradelines, such as credit cards or auto loan payments. So even though the late fee can be expensive by itself, the increased cost of all of your credit caused by the reduction in your credit score can be significantly more. This is why it is advisable to always make timely payments to your mortgage, as your first priority.
Late fees are when you are late on your mortgage by 15 days. Late fees can vary from lender to lender and in some instances state to state. The average late fee is 5% of the payment.
You pay a late fee if your payment is more than 15 days late.
Your credit only reflects a late payment once the payment has gone 30 days past due or more.
If you have your mortgage loan payments set up for automatic withdrawal from your bank account you can usually set your withdrawal to come out on any day before your grace period is up. Therefore, if you have a 15 day grace period on your mortgage before a late fee is assessed, you could even set up your payment to come out on the last day of this grace period if you needed to in order to avoid the late fee. Therefore, if you have your payment set up to come out on the first day of the month and that day is not good for you, consider moving your withdrawal date back (as long as it is still within your grace period) in order to help out and make matter for manageable for yourself.
With the automatic mortgage payment withdrawal service, you can choose the date your account is debited, up to the 15th of the month. This is a great way to avoid late payments for those who travel.
If you are going to be late try calling the lender and letting them know your situation. Some lenders will waive the late fee once every 12 months for customers who are normally in good standing.