Your lender is required to issue a closing disclosure at least three business days before the closing date. Making last minute changes could delay the closing. If the closing date gets pushed back, you could miss out on the benefits you were trying to gain from closing on the date you selected. Update : Have further financial questions? SmartAsset can help.
Not sure, you may want to ask your servicer directly to see if the amounts are off or if they allocated incorrectly. Generally mortgages are only considered late if delinquent for 30 days and reported to the credit bureaus as such only after that amount of time has passed. A payment that is a few days late is typically just hit with a late fee and no credit hit.
If I pay my mortgage today September 13th and its due October 1st, will it be applied correctly? Im not trying to save money on interest…I just want to make my payment now while I have the money and before I forget. Thank you! My lender just sold my mortgage The maturity date was The new lender states on monthly payment the maturity date is Payment amount did not change Not sure whats going on When I call they tell me the computers are down. Good luck. Hi Colin, If my payment is due on the 17th of each month and I get paid on the 1st and 15th, is it OK to make 2 payments prior to the due date?
Or do they allow multiple payments as long as they add up to the full payment amount and then process it? Best to ask your servicer directly to avoid any unwanted surprises. I have mortgage with PHH. Just noticed that a few years ago they started applying my extra payments to the next month due date. It used to be current month for a while so I stopped checking on it. They did it without notified me. Is this legal to do? It already cost me a few hundreds of extra interest paid. Customer service tried to convince me that it does not matter how they apply the extra payment.
Not sure about legality, but it certainly sounds frustrating. You may want to clarify in the future when sending extra payments. Gotta love that! I hope I live long enough to appreciate that savings, LOL! Is this legal? Probably best to contact them directly for their specific policy. Thank You for the extremely useful info. I have an ARM Loan that my rate should be fixed for 10 years! Is this normal and lawful to charge interest on money that you no longer owe? What do you suggest? How can I follow up?
Paying before the due date generally does nothing to save you money, but paying extra WITH your normal monthly payment can reduce interest in future months. You may want to call your servicer directly to communicate your desire to make additional payments to principal and how best to go about it so they apply it correctly. One day past the 15th equals to late fee and a day late ding on all three credit bureaus.
So what should I do? And that may have eliminated future grace periods, which could have resulted in a day late. Once you go beyond that, any grace period might cease to exist until you get back on track. I have always paid before the 30th to avoid being reported to credit bureau.
I recently refinanced my home and made my first payment last month. They told me that to make sure my payment was made by the 30th. I paid it on the 29th which is a Friday. When I submitted the payment on their website it said I made my payment on the 29th, but it will not post til Monday, November 1st.
Does that mean they excluded weekends thus making my payment past 30 days and being reported to the credit bureau? Or does it mean my payment was considered on time but would post to clear on the 1st? It was made before the 30th which is hopefully considered on-time. Your thoughts? Good question — and it may depend on the loan servicer.
Some may process payments differently. But this illustrates the danger of paying late as things like processing time could throw a wrench in the deal.
Good luck and let us know what happened! Your email address will not be published. Twitter Facebook LinkedIn Email. Lucas June 11, at pm. RandallTo May 4, at am. Colin Robertson May 4, at pm.
Randall, Thanks for sharing that info. Roger June 6, at am. Philip Kaplan June 13, at pm. Colin Robertson June 18, at am. Colin Robertson July 1, at pm. Ronnie, No point in speculating — best to ask your servicer directly how payments will be applied. Chris M July 10, at am.
Colin Robertson July 10, at am. Chris, It depends on the bank really. Dave B July 31, at am. Colin Robertson July 31, at am.
ELLA September 14, at am. Colin Robertson September 14, at pm. Art Hunter September 29, at am. Thanks Art. Colin Robertson October 1, at am. Debra December 24, at pm.
Debbie January 4, at pm. Colin Robertson January 6, at am. Marc February 1, at am. Colin Robertson February 1, at pm. Marc, Perhaps interest accrued during the month that is paid in arrears.
Your first mortgage payment will likely be due on the first of the month, but not immediately. It will be due at the beginning of the first full month after the date you closed. For example, if you closed on July 4, your first mortgage payment is due on September 1.
Pretty cool, right? Before you relax too much, keep in mind that everything happens for a reason. Here are a few other options to confirm your due date:. That period in between is when the interest starts to accrue on your mortgage. These interest costs will be prepaid by you at closing and will vary based on if you scheduled your closing earlier or later in the month.
Going back to my earlier example: If you closed on July 4, you would need to prepay 27 days of interest. On the other hand, if you closed on July 24, you would have to prepay only 7 days of interest. Do you want to pay more or less in prepaid interest?
Or does the amount of time before your first payment due matter more? Either way, there will be some benefit to whatever you choose.
Becoming a new homeowner means you probably upgraded from being the opposite: a renter. In a way, yes. Most lease agreements have the first of each month as the due date of rent, similar to mortgage lenders or banks that require payment on the first of the month as well. Out of the many ways to pay off your monthly mortgage payment, it all comes down to your mortgage lender and what services they offer to streamline the process.
If your mortgage lender is local and family-owned, they might have a traditional way of doing business and request that you mail in a check every month for your payment.
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