Explore the Mortgage101 Library
Check Local Mortgage Rates
Calculators
FEATURED CALCULATORLoan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
TERMINOLOGY
Late mortgage payments can be extremely detrimental to your credit report. If you are on the verge of making a late payment, there are several things that you will want to consider. Here are the basics of how your credit is affected by late mortgage payments.
Late Mortgage Payments
With most mortgages, you are going to have a grace period. This means that you are going to have 10 to 15 days after your due date to actually make the payment with no penalty. Beyond that, you are going to be considered late on your payment. The lender will charge you a late fee and report it to the credit bureaus.
Effect on Credit
Having a late payment on your credit report can reflect very negatively on you. When you have one late payment, it is going to potentially lower your credit score by 40 to 70 points. If you get in the habit of paying your mortgage late, you are really going to hurt your chances of getting credit again in the future. Lenders will see that you do not pay your bills on time, and they are going to be very skeptical about giving you additional credit.
More Articles...
What Are Typical Mortgage Down Payments?
Low Down Payment Loan Qualification
- 3 Common Short Sale Mistakes
- Home Equity Loans for People with Bad Credit
- What To Do When Mortgages Default
- Second Mortgages: Advantages and Disadvantages
- FHA Eligibility with Bankruptcy and Foreclosure
- 3 Factors that Can Negatively Affect Your Mortgage Application
- 3 Reasons Banks Reject Short Sales
- Short Selling a Rental Property
- How to Get Approved for an FHA Loan despite Bad Credit