Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Site Notices
Posted: 3/27/2006 5:43:37 AM EDT
My house payment says on the statement that it's due by 4/01/06. Then it says "Late Payment if received after 4/16/06" (and specifies the higher payment if late). Does that mean that I'm OK if they receive the payment check by 4/16/06? Is there any benefit for me to make sure they receive my payment check on 4/01 vs. 4/16?
Link Posted: 3/27/2006 5:48:32 AM EDT

Originally Posted By TacticalStrat:
My house payment says on the statement that it's due by 4/01/06. Then it says "Late Payment if received after 4/16/06" (and specifies the higher payment if late). Does that mean that I'm OK if they receive the payment check by 4/16/06? Is there any benefit for me to make sure they receive my payment check on 4/01 vs. 4/16?



You are correct. The 15 day 'grace period' is meant to account for those occasional "oh sh!t" or the good ol USPS losing your payment, but realistically, as long as your payment hits their system on or before the 16th, you're fine. They might call and politely "remind you" when your payment is due, but you are within the terms of your mortgage if you pay on the 15th every time.
Link Posted: 3/27/2006 5:49:28 AM EDT
YES!

Do not mess with the 1st of the month date. This is when your payment is due. They give you a little lee-way to account for the mail, and processing time.

Thats why they do not drill you until, like the 16th.

Consider your payment due on the first. If you are trying to be cheap and save a few pennies, then brown bag your lunch. DO not play russian roulette with your mortgage payment.

While it is true that you will not face SERIOUS consequences until you are 30 days past due ( or more), your agreement is to pay on the 1st of the month. Keep it.
Link Posted: 3/27/2006 5:58:07 AM EDT
I always send my payment on 30th or 31st, seems to get there on the 1st - 3rd. I have email notification when my payment was received which is a nice thing plus I can check my loan history online.
Link Posted: 3/27/2006 6:02:01 AM EDT
Auto payments. Come hell or high water I want the mortgage paid first. I like shelter and good credit.
Link Posted: 3/27/2006 6:04:01 AM EDT

Originally Posted By Grunteled:
Auto payments. Come hell or high water I want the mortgage paid first. I like shelter and good credit.



+1
Link Posted: 3/27/2006 6:04:27 AM EDT
Here's the deal. I just bought a new house on 3/8/06. My intention when I took out the mortgage was to pay it off as soon as our old house sold. The closing on the old house is 3/31/06 and I'll have the funds to pay off the mortgage in a few days after that. So my dilemma is, do I send in the first mortgage payment (due 4/1) and then pay off the mortgage a few days later? Or should not send in the first payment and just wait until around 4/5 and send in the pay-off amount in full?
Link Posted: 3/27/2006 6:07:31 AM EDT

Originally Posted By TacticalStrat:
Here's the deal. I just bought a new house on 3/8/06. My intention when I took out the mortgage was to pay it off as soon as our old house sold. The closing on the old house is 3/31/06 and I'll have the funds to pay off the mortgage in a few days after that. So my dilemma is, do I send in the first mortgage payment (due 4/1) and then pay off the mortgage a few days later? Or should not send in the first payment and just wait until around 4/5 and send in the pay-off amount in full?



Situations like this are exactly what the 'grace period' is for. You're fine waiting.
Link Posted: 3/27/2006 6:08:10 AM EDT
Make the payment as agreed. You will save a few $ interest.
Link Posted: 3/27/2006 6:14:59 AM EDT

Originally Posted By kcobean:

Originally Posted By TacticalStrat:
Here's the deal. I just bought a new house on 3/8/06. My intention when I took out the mortgage was to pay it off as soon as our old house sold. The closing on the old house is 3/31/06 and I'll have the funds to pay off the mortgage in a few days after that. So my dilemma is, do I send in the first mortgage payment (due 4/1) and then pay off the mortgage a few days later? Or should not send in the first payment and just wait until around 4/5 and send in the pay-off amount in full?



Situations like this are exactly what the 'grace period' is for. You're fine waiting.



I agree. Additionally, this was not the scenario originally presented in this post. I thought you were discussing an ongoing situation of mortgage payments, not a one time scenario.

Lastly - If you took out a mortgage, and you only are keeping it for about 45 days (because of house sale timing) I hope you got a bridge loan, or another short term type loan. Otherwise, I bet you just spent the equivalent of a Barrett .50 on un-necessary loan costs and fees.

All in all, it depends on what kind of counsel you got, and how much risk was on the table.

Congrats on your new house!

Link Posted: 3/27/2006 6:44:16 AM EDT

Originally Posted By DAC_2141:

Originally Posted By kcobean:

Originally Posted By TacticalStrat:
Here's the deal. I just bought a new house on 3/8/06. My intention when I took out the mortgage was to pay it off as soon as our old house sold. The closing on the old house is 3/31/06 and I'll have the funds to pay off the mortgage in a few days after that. So my dilemma is, do I send in the first mortgage payment (due 4/1) and then pay off the mortgage a few days later? Or should not send in the first payment and just wait until around 4/5 and send in the pay-off amount in full?



Situations like this are exactly what the 'grace period' is for. You're fine waiting.



I agree. Additionally, this was not the scenario originally presented in this post. I thought you were discussing an ongoing situation of mortgage payments, not a one time scenario.

Lastly - If you took out a mortgage, and you only are keeping it for about 45 days (because of house sale timing) I hope you got a bridge loan, or another short term type loan. Otherwise, I bet you just spent the equivalent of a Barrett .50 on un-necessary loan costs and fees.

All in all, it depends on what kind of counsel you got, and how much risk was on the table.

Congrats on your new house!





Thanks! The loan I got was a fixed 30 year loan at 6.5% with ZERO lender fees. I knew I was going to pay-off the loan in a month or two, so finding a zero fee loan was the most important thing. Bottomline was the money cost me 6.5% for about 30 days, and that's hard to beat. The bridge loans and home equity loans would have run around 8%+, with home equity loans having a $500 penalty if paid off in the first year.
Link Posted: 3/27/2006 7:42:45 AM EDT
Keep in mind, if you get in the habit of sending it in for the 1st, and someday it gets lost in the system and arrives after the 15th, they'll be much more likely to believe you than if you send it in so it always just barely arrives by the 15th!
Top Top