Any problem w/mortgage payments after due date?
Shekar Benakatti
due but before the fine kicks in. Is there a danger with this approach? I
mean will my credit standing get geopardized? Isn't it better to delay
payment until just before the fine kicks in? I need your comments & not
flames.
Thanks a lot,
--
Shekar Benakatti sben...@spd.dsccc.com (214)519-4915 Fax:(214)519-3798
DSC Communications Corporation MS 153, 1000 Coit Rd, Plano, TX 75075-5813
John Hascall
}I have paid last several mortgage payments a few (2-7) days after they are
}due but before the fine kicks in. Is there a danger with this approach? I
}mean will my credit standing get geopardized? Isn't it better to delay
}payment until just before the fine kicks in? I need your comments & not
}flames.
It is my guess that your interest is computed daily, so all you
are doing is accruing extra interest and your loan will not be
paid off as soon as you think (that or they'll sock you for a
big balloon at the end).
John
--
John Hascall ``An ill-chosen word is the fool's messenger.''
Moderator, comp.unix.wizards
Systems Software Engineer, ISU Comp Center + Ames, IA 50011 + 515/294-9551
<a href="http://www.cc.iastate.edu/staff/systems/john/john.html"> Homepage </a>
Brett Costley
>I have paid last several mortgage payments a few (2-7) days after they are
>due but before the fine kicks in. Is there a danger with this approach? I
>mean will my credit standing get geopardized? Isn't it better to delay
>payment until just before the fine kicks in? I need your comments & not
>flames.
My mortage company(RBMG) recommended to me that I mail my payment on
the due date so that it will have time to reach them before the
'penalty' date. YMMV.
Brian Henk
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I came, I saw, I unsubscribed.
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: --
: bre...@bangate.compaq.com
Just remember, the interest payment is calculated on an average of the
DAILY balance. By mailing your payment so that it just meets the fine
payment deadline, you are adding the difference of that interest for those
12-15 days from your daily balance if you paid on the due date to your total
balance due.
JeanK.
Brett Costley
Chris Jacobs
> >I have paid last several mortgage payments a few (2-7) days after they are
> >due but before the fine kicks in. Is there a danger with this approach? I
> >mean will my credit standing get geopardized? Isn't it better to delay
> >payment until just before the fine kicks in? I need your comments & not
> >flames.
Unfortunately, you are definetly being penalized for this. Most banks
will classify you as a "slow payer" which in some sort of banking
language is forwarded to the credit companies. I know a couple who paid
their mortgage a few days before the fine kicked in for 10 years. When
they wanted to buy a new house they had a VERY hard time finding a
bank who would finance them because they were "slow payers". This of
course was news to them. IMHO, pay on time.
chris
Tom Agler
payments made after the due date but before the penalty date are not
considered late and therefore not reported to a Credit Bureau. They do,
however, consider giving special treatment to those that consistently make
their payments on the "due" date by waiving the penalty fee in an instance
where their payment was not received until after the penalty date (check lost
in the mail for instance). This is a judgement call by the Mortgage company
and is extended only to those that have a strong payment history and a
reasonable excuse.
Tom Agler
tom....@daytonoh.attgis.com
----- it's not the language that matters, but the
communication of ideas----- Richard Bach
David Chrudimsky
>I have paid last several mortgage payments a few (2-7) days after they are
>due but before the fine kicks in. Is there a danger with this approach? I
>mean will my credit standing get geopardized? Isn't it better to delay
>payment until just before the fine kicks in? I need your comments & not
>flames.
>
>--
>Shekar Benakatti sben...@spd.dsccc.com (214)519-4915 Fax:(214)519-3798
>DSC Communications Corporation MS 153, 1000 Coit Rd, Plano, TX 75075-5813
Ok, I'll try not to flame. I know I will be in the minority on this issue,
but I would recommend paying it by the due date. The mortgage company is
providing you with a service, and you are paying (in interest) for that
service. You agreed to the terms, and (I assume) the mortgage company is
acting in good faith. Now, it seems that you want to nickel and dime them
for every payment. If a problem arises in the future, on which argument do
you think the company will be more likely to offer help:
1) I've made payments on time for x years to service this debt, will you
help me with this problem?
2) I've withheld your money from you to the very last possible deadline,
even though I promised to give it to you "on time" when I signed up
for this debt, because I think that mortgage companies are basically
crooks, and I can earn an extra dime a day. Will you help me with this
problem?
And no, I don't work for mortgage companies. I just believe in good will.
-chrud
--
David Chrudimsky ch...@amcu-tx.sps.mot.com
Motorola Inc. Austin Who want's to live forever?? -Queen
'89 Kawasaki EX500 Be careful or be roadkill -Calvin
Randy Casciola
Well, you might be in the minority with this opinion, but I certainly
agree with you completely.
Randy
P.S., I don't work for a mortgage company either.
Ron Porter
SB>I have paid last several mortgage payments a few (2-7) days after they are
SB>due but before the fine kicks in. Is there a danger with this approach? I
SB>mean will my credit standing get geopardized? Isn't it better to delay
SB>payment until just before the fine kicks in? I need your comments & not
SB>flames.
That has always worked for me over the past 30 years and has had no
negative effect on my credit standing. However, it was mentioned once on
a refi, but didn't stop the loan from being done.
-Ron Porter-
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David Chrudimsky
In article <3rk4pm$h...@sun001.spd.dsccc.com> sben...@spd.dsccc.com (Shekar Benakatti) writes:
>I have paid last several mortgage payments a few (2-7) days after they are
>due but before the fine kicks in. Is there a danger with this approach? I
>mean will my credit standing get geopardized? Isn't it better to delay
>payment until just before the fine kicks in? I need your comments & not
Randy Casciola
In article <3rmn1f$m...@newsgate.sps.mot.com>, ch...@toot.sps.mot.com (David Chrudimsky) writes:
Well, you might be in the minority with this opinion, but I certainly
agree with you completely.
Randy
P.S., I don't work for a mortgage company either.
Bryan Putnam
>}I have paid last several mortgage payments a few (2-7) days after they are
>}due but before the fine kicks in. Is there a danger with this approach? I
>}mean will my credit standing get geopardized? Isn't it better to delay
>}payment until just before the fine kicks in? I need your comments & not
>}flames.
>
Well, Bruce Williams, the well-know radio talk show on financial
matters once said that anyone who pays their mortgage before the 15th
of the month (after which a late fee is imposed) is quote "an idiot."
So I suppose the answer is no it will not affect your credit rating.
Bryan
Roger P. Chartier
shouldn't be of concern. Bills should be paid as late as possible in
order for you to have the use of your funds. Just make sure to allow
enough time for the bank to receive and post your payment before the
penalty date!
David Sangster
: 2) I've withheld your money from you to the very last possible deadline,
: even though I promised to give it to you "on time" when I signed up
: for this debt, because I think that mortgage companies are basically
: crooks, and I can earn an extra dime a day. Will you help me with this
: problem?
Actually sometimes the reason for "late" (err, I mean delayed) payments is
quite simple, and has no machevallian intentions: maybe the person gets *paid*
after the due date (I do). My mortgatge is due on the 1st of each month.
I get paid on the 6th => I pay after the 1st (when it's "due") and before
the late payment kicks in.
I think the grace period allows for:
- salary not being paid at the same time as mortgages due, and
- delays in the mail.
The mortgage company isn't doing you any favors - they are in a business
agreement with you to make money.
-David (dav...@jamdown.corp.hp.com)
--
Chia-Chi Chao
>Ok, I'll try not to flame. I know I will be in the minority on this issue,
>but I would recommend paying it by the due date. The mortgage company is
>providing you with a service, and you are paying (in interest) for that
>service. You agreed to the terms, and (I assume) the mortgage company is
>acting in good faith. Now, it seems that you want to nickel and dime them
>for every payment.
I have automatic payment for mortgage and Discover:
1. For mortgage, it's due on the 1st and late on the 15th. For auto-payment,
they let me pick a monthly payment date from 1st to 10th.
2. For Discover, they make the withdrawl on the closing date for the next
statement. That means I have a full month of grace period rather than
the regular 25 days or so.
These are their policies, so they don't consider them paying "late".
--
Chia-Chi Chao ch...@engr.sgi.com Silicon Graphics, Inc.
David Sangster
Marni Klein
Brian Henk <bhe...@sun.cps.plnin.gmeds.com> wrote:
>Why not call your mortgage company and ask them.
>
On my most recent mortgage payment book (which I promptly mis-placed :( ,
there are two dates. The first date says the date the payment is due by,
ie the first of the month, and the second it the "date which payment must
be received before the late fee it attached"
If that isn't an invitation to pay late, I don't know what is!
--
Marni - mkl...@nyx.cs.du.edu
The Earth was not given to us by our parents,
it was loaned to us by our children - Anonymous
Bryan Putnam
Chia-Chi Chao
Jonas Schlein
|> due but before the fine kicks in. Is there a danger with this approach? I
|> mean will my credit standing get geopardized? Isn't it better to delay
|> payment until just before the fine kicks in? I need your comments & not
|> flames.
When does the law say that you have paid your obligation? What I mean is, is
it the postmarked date on your letter or is it the date they receive it in
the mail...My mother sent her letter out the day before it was due and they
didn't receive it until the day after. It was postmarked the date she mailed
it. They charged her a small late fine which she paid just to shut them up.
Who was in the right?
Thanks...
--
"Two rights may never make a wrong, | Jonas Schlein
but three rights always make a left." | sch...@gl.umbc.edu
Charleen Bunjiovianna
>
>When does the law say that you have paid your obligation? What I mean is, is
>it the postmarked date on your letter or is it the date they receive it in
>the mail...My mother sent her letter out the day before it was due and they
>didn't receive it until the day after. It was postmarked the date she mailed
>it. They charged her a small late fine which she paid just to shut them up.
I must say I don't understand this attitude.
I guess when your tax refund check gets lost in the mail, you don't call
the IRS and have them issue another, since their obligation to you was
discharged when they mailed it, right?
>Who was in the right?
The mortgage company, of course. Is this a trick question?
Charleen
--
Dozens of antiques links, antiques and collectibles for sale, rec.antiques
archive, the latest I-COLLECT list, pointers to reference works, our 1995
show schedule and more...
URL: http://www.spies.com/~charleen/
The Mad Russian
(Jean Kessel) wrote:
> Just remember, the interest payment is calculated on an average of the
> DAILY balance. By mailing your payment so that it just meets the fine
> payment deadline, you are adding the difference of that interest for those
> 12-15 days from your daily balance if you paid on the due date to your total
> balance due.
Well, I've had six different mortage companies/banks and not one of them
re-calculated the prinicipal or interest based upon the day they received
the payment.
What mortgage company are you using that calcualtes the average daily
balance ?!?
Regards,
The Mad Russian
--
The opinions contained herein are my own, and may or may not reflect the
opinions of my employer.
Mark Barrett
: In article <3rkqcb$d...@college.antioch.edu>, jke...@college.antioch.edu
: (Jean Kessel) wrote:
: > Just remember, the interest payment is calculated on an average of the
: > DAILY balance. By mailing your payment so that it just meets the fine
: > payment deadline, you are adding the difference of that interest for those
: > 12-15 days from your daily balance if you paid on the due date to your total
: > balance due.
: Well, I've had six different mortage companies/banks and not one of them
: re-calculated the prinicipal or interest based upon the day they received
: the payment.
I had the same response when I read the above post. Making a mortgage
payment on the 2nd when it is due on the first does not add one day of
interest to the mortgage balance. I set up automatic payment for my
principal mortgage. The mortgage company had a choice for either doing
the draft on the 1st or the 5th. I asked them if it made a difference
and it didn't. They offered the choice as a matter of convenience to the
customer.
Up to now I have never made a prepayment since I usually put that extra
money into a monthly mutual fund investment. However, I have been thinking
about kicking in an extra $100 a month. I checked with the mortgage
company and found that the date of prepayments does make a difference.
If I decide to start the pre-payment I will change my automatic mortgage
payment from the 5th to the 1st since the mortgage company would prefer
that the prepayment be paid at the same time as the regular payment.
There was another post on this matter concerning "slow pay", where your
credit report would reflect a history of paying late, but before the late
day. I don't think so. Paying prior to the late day is always an on-time
payment and generally keeps mortgage companies happy. I always thought
"slow pay" was a late payment and only late payments of a minimum of 30
days would show up on credit report. I have never made a late payment
and I always pay after the 1st. I have had many mortgages (re-financings,
etc.) and never had a mortgage company complain about my credit. They
were just falling all over themselves to lend me money.
Mark Barrett
ma...@col.hp.com
Laura Brooks
: >}I have paid last several mortgage payments a few (2-7) days after they are
: >}due but before the fine kicks in. Is there a danger with this approach? I
: >}mean will my credit standing get geopardized? Isn't it better to delay
: >}payment until just before the fine kicks in? I need your comments & not
: >}flames.
We generally pay ours after the due date - no particular reason
except that we procrastinate everything else, so why not this? :-)
Our credit rating is about as close to perfect as you can get, we
have never had any trouble getting approved for things. So I don't
think these pseudo-late payments count.
Laura Brooks
Edward Rice
|> I have paid last several mortgage payments a few (2-7) days after they
|> are due but before the fine kicks in. Is there a danger with this
|> approach? I mean will my credit standing get geopardized? Isn't it
|> better to delay payment until just before the fine kicks in? I need
|> your comments & not flames.
|>
JS> When does the law say that you have paid your obligation? What I mean
JS> is, is it the postmarked date on your letter or is it the date they
JS> receive it in the mail...My mother sent her letter out the day before
JS> it was due and they didn't receive it until the day after. It was
JS> postmarked the date she mailed it. They charged her a small late fine
JS> which she paid just to shut them up.
JS>
JS> Who was in the right?
The mortgage company. It is the individual's obligation to allow for delays in
transmission. Standard commercial practice. Sorry.
Jim Nitchals
>I have paid last several mortgage payments a few (2-7) days after they are
>due but before the fine kicks in. Is there a danger with this approach? I
>mean will my credit standing get geopardized? Isn't it better to delay
>payment until just before the fine kicks in? I need your comments & not
>flames.
As a newbie homeowner, I called the mortgage company and asked this question
directly. Background: payments are not considered late as long as they're
received on or before the 15th of the month. Their response: payments
received by the 15th are never considered late in any sense by them, and
are not reported as late to any credit agency. There's a late payment fee
if the payment is NOT received by the 15th, and I was told that "repeated
payments made late by less than 15 days (ie received on the 16th-30th of
the month) may be reported to credit agencies." And for payments that are
late enough to miss the whole month: "always reported to credit agencies."
I was also told that payments received on the 16th were usually processed
as being made on-time.
Note the difference between when you *mail* your payment and when they
*receive* it. Be conservative, and measure the delay in the postal
system for awhile before you try to squeeze that last day's interest
out of the money. They really do expect to have your check in hand by
the date specified in your mortgage papers. We always allow more time
if there are holidays (especially Christmas) coming up.
Our loan was sold to another company soon after my query, but the new
company offers a direct debit option with an option to pay on the 10th of
the month. They clearly wouldn't offer such an option if they weren't
comfortable with receiving payments that late in the month.
Our mortgage does, by the way, spell out that payments received by the
15th are considered to have been made on the 1st with regard to interest
calculations.
- Jim
--
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Dave Rotheroe
>sben...@spd.dsccc.com (Shekar Benakatti) wrote:
>>I have paid last several mortgage payments a few (2-7) days after they are
>>due but before the fine kicks in. Is there a danger with this approach? I
>>mean will my credit standing get geopardized? Isn't it better to delay
>>payment until just before the fine kicks in? I need your comments & not
>>flames.
>My mortage company(RBMG) recommended to me that I mail my payment on
>the due date so that it will have time to reach them before the
>'penalty' date. YMMV.
depending on your lender, contract, and state, you may be charged additional
interest to the date your payment is received or in certain circumstances for
an entire additional month. of course you want to make absolutely sure your
December payment is received and processed by the mortgage company in
December, to be able to write off the interest on that years taxes, and not
the next.
Dave
Tool-Using Mammal
> *receive* it. Be conservative, and measure the delay in the postal
> system for awhile before you try to squeeze that last day's interest
> out of the money.
Note that if you always send your check out at the same time of the month,
it does not matter which day you send it on, since your payments will
always be one month apart. Even if you vary the times you send it in,
over several payments your "gain" and "loss" of interest will average out
to zero, since the mortgage company will figure the interest based on the
first of the month due date, regardless of whether you paid before or
after that date (at least for a standard amortized loan). However, it IS
convenient to be able to shift the payment schedule to fit your paycheck
schedule.
--
William A. Emanuelsen "Early to bed and early to rise,
w...@aerospace.aero.org makes a man healthy, wealthy and wise."
-- some dead guy
Bryan Putnam
>
>Note that if you always send your check out at the same time of the month,
>it does not matter which day you send it on, since your payments will
>always be one month apart. Even if you vary the times you send it in,
That's a fairly common misunderstanding and is not true.
The person who pays his mortgage on the 1st of the month loses 15
days of interest that he could be earning had he paid later on the
15th.
Some people also say that you only lose interest on the first month
of the mortgage if you constantly pay early, but that is again not
true. You lose interest on that money for EVERY month of the
mortgage.
Charleen Bunjiovianna
>
>The person who pays his mortgage on the 1st of the month loses 15
>days of interest that he could be earning had he paid later on the
>15th.
With passbook savings accounts paying...what, 2 or 3 percent per annum
these days?...I'm amused at the folks who wait until the absolute last
minute to mail off their mortgage check. On one of my mortgages the
late fee is $50.
If you really think it's a smart gamble to rely on USPS when the
possible win is only a few dollars and the possible loss is $50,
go for it. My mortgage company doesn't care what the postmark on
the envelope is, only when they receive the payment.
Charleen
--
Dozens of antiques links, antiques and collectibles for sale (Visa/MC
welcome!), rec.antiques archive, the latest I-COLLECT list, pointers to
E Hagan
>The person who pays his mortgage on the 1st of the month loses 15
>days of interest that he could be earning had he paid later on the
>15th.
>Some people also say that you only lose interest on the first month
>of the mortgage if you constantly pay early, but that is again not
>true. You lose interest on that money for EVERY month of the
>mortgage.
Well, I would think that's true only if you hold your money in an interest
bearing account of some kind before you make payments. If you have the money
in a non-interest bearing checking account you obviously don't lose any money
by paying early. Tightwads who worry about these kinds of things have said
the same thing (about paying all your bills on the latest possible unpenalized
day) as the best penny pinching way to go, but for those who would just spend
that money and end up paying with just earned dollars, or forget to pay on
time, it makes sense (even if not cents) to pay early.
BTW, Jane Quinn and other experts say in no uncertain terms that consistant
ate payers will find it difficult to get later mortgages. Just to earn a few
dollars of interest may not be worth the risk.
Betsy H
Bryan Putnam
E Hagan <BET...@lms.kent.edu> wrote:
>In article <3scehi$4...@bfp.cc.purdue.edu> b...@bfp.cc.purdue.edu (Bryan Putnam) writes:
>
>>The person who pays his mortgage on the 1st of the month loses 15
>>days of interest that he could be earning had he paid later on the
>>15th.
>
>>Some people also say that you only lose interest on the first month
>>of the mortgage if you constantly pay early, but that is again not
>>true. You lose interest on that money for EVERY month of the
>>mortgage.
>
>
>Well, I would think that's true only if you hold your money in an interest
>bearing account of some kind before you make payments. If you have the money
>in a non-interest bearing checking account you obviously don't lose any money
Well yes, of course you need to be investing that payment in
something for the 15 days. And I agree that for the typical homeowner
with a < $1000 mortgage who would otherwise have his payment in a 3%
money market, none of this is worth worrying about. Corporations take
it very seriously though.
>by paying early. Tightwads who worry about these kinds of things have said
>the same thing (about paying all your bills on the latest possible unpenalized
I'm offended that you call me a tightwad :-)
>BTW, Jane Quinn and other experts say in no uncertain terms that consistant
>ate payers will find it difficult to get later mortgages. Just to earn a few
>dollars of interest may not be worth the risk.
>
Before the 15th is not considered late by most banks. I myself
normally pay around the 3rd or 4th and have never had any difficulty
getting another mortgage or refinance, which I have done 4 times so
far. The reason I pay that early is because I worry about the postal
system.
Tool-Using Mammal
Putnam) >wrote:
> >In article <wae-220695...@papabear.aero.org>,
> >
> >Note that if you always send your check out at the same time of the month,
> >it does not matter which day you send it on, since your payments will
> >always be one month apart. Even if you vary the times you send it in,
>
> That's a fairly common misunderstanding and is not true.
>
> The person who pays his mortgage on the 1st of the month loses 15
> days of interest that he could be earning had he paid later on the
> 15th.
>
> Some people also say that you only lose interest on the first month
> of the mortgage if you constantly pay early, but that is again not
> true. You lose interest on that money for EVERY month of the
> mortgage.
Don't just tell me I'm wrong, show me I'm wrong. Maybe there's something
I'm not seeing here -- I could be wrong, but I can't tell why from your
reply.
You seem to be saying that by paying late, a person gets two weeks extra
use of their money each month. I am saying that both people will get one
month's use of the payment money before they send it in. Help me see the
light. ;)
Marni Klein
Bryan Putnam <b...@bfp.cc.purdue.edu> wrote:
>In article <wae-220695...@papabear.aero.org>,
>>
>>Note that if you always send your check out at the same time of the month,
>>it does not matter which day you send it on, since your payments will
>>always be one month apart. Even if you vary the times you send it in,
>
>That's a fairly common misunderstanding and is not true.
>
>The person who pays his mortgage on the 1st of the month loses 15
>days of interest that he could be earning had he paid later on the
>15th.
>
>Some people also say that you only lose interest on the first month
>of the mortgage if you constantly pay early, but that is again not
>true. You lose interest on that money for EVERY month of the
>mortgage.
Maybe so but, I just like to think of the peace of mind I get knowing my
payment will get there on time, with no late fee, and no bad marks on my
credit report. Your arguments are credible but only based on the
interest you will earn for a week or two. Lets face it, if you sent out
your payment on the last possible moment to get the most use of your money
and interest and the payment got lost in the mail and you got charged a
hefty late fee and a bad spot on your credit report, would you be happy?
I am not trying to dis your method of payment, just trying to show you a
different way of thinking.
--
Marni - mkl...@nyx.cs.du.edu