I think the 50 year mortgage is CRAZY for a multitude of reasons, but I can also recognize there are reasons why someone would choose it. It just feels so predatory!
A question about making mortgage payments has been on my mind and I wanted to put it out there for you. My mortgage is due on the 1st each month, but not "late" or any fees charged until the 17th. I should preface this by saying that I have never been late on a payment or charged a late fee for any property we've owned. Is there harm in paying after the first? I have occasionally floated the day my payment posts the first week of the month since I get paid every two weeks (more to help manage cash flow in my budget). It doesn't seem to impact my credit and my payments are all on time. If that's the case, wouldn't everyone just pay on the 16th?! I still consider the first to be the due date though and it would make me too nervous to wait until the last minute!
If it doesn't hurt your credit or incur a late fee, then there may be no real consequence for not paying promptly on the 1st. (When it comes to your credit, stuff generally doesn't get reported as late until it is 30 days late anyway, so the late fee is likely the more pressing question.) Please don't take my word for it, though. If you have any questions or concerns, reaching out to your mortgage lender would be a really good idea.
As for why everyone wouldn't just pay on the latest possible day, there are plenty of possible reasons. Maybe they'd be nervous of a tech glitch and don't want to cut it too close, like you said. Maybe they pay their mortgage with one of their paychecks and other big bills with another paycheck during the month as a way to manage cash flow. Maybe they're simply in the routine of paying their mortgage early in the month and don't want to change. Plenty of other possibilities, too.
Ultimately, it is a good thing that you get that leeway from your lender when it comes to paying your mortgage. Goofy stuff happens, so having a flexible window to pay can eliminate some headaches when they do.
Thank you for the reply, Matt! I agree that it's so great that there is the leeway from the lender. The psychology around it is so interesting too. I appreciate you and your awesome information!
I think the 50 year mortgage is CRAZY for a multitude of reasons, but I can also recognize there are reasons why someone would choose it. It just feels so predatory!
A question about making mortgage payments has been on my mind and I wanted to put it out there for you. My mortgage is due on the 1st each month, but not "late" or any fees charged until the 17th. I should preface this by saying that I have never been late on a payment or charged a late fee for any property we've owned. Is there harm in paying after the first? I have occasionally floated the day my payment posts the first week of the month since I get paid every two weeks (more to help manage cash flow in my budget). It doesn't seem to impact my credit and my payments are all on time. If that's the case, wouldn't everyone just pay on the 16th?! I still consider the first to be the due date though and it would make me too nervous to wait until the last minute!
That's really interesting, Julie.
If it doesn't hurt your credit or incur a late fee, then there may be no real consequence for not paying promptly on the 1st. (When it comes to your credit, stuff generally doesn't get reported as late until it is 30 days late anyway, so the late fee is likely the more pressing question.) Please don't take my word for it, though. If you have any questions or concerns, reaching out to your mortgage lender would be a really good idea.
As for why everyone wouldn't just pay on the latest possible day, there are plenty of possible reasons. Maybe they'd be nervous of a tech glitch and don't want to cut it too close, like you said. Maybe they pay their mortgage with one of their paychecks and other big bills with another paycheck during the month as a way to manage cash flow. Maybe they're simply in the routine of paying their mortgage early in the month and don't want to change. Plenty of other possibilities, too.
Ultimately, it is a good thing that you get that leeway from your lender when it comes to paying your mortgage. Goofy stuff happens, so having a flexible window to pay can eliminate some headaches when they do.
Thank you for the reply, Matt! I agree that it's so great that there is the leeway from the lender. The psychology around it is so interesting too. I appreciate you and your awesome information!