Paying Mortgage on 1st or before 15th?

[Titus]

I picture some old balding guy in Nevada, TX in his PJ's a 3:30pm with his shaky finger on the keyboard figuring out ways to mess with the "Computer"!

Hey now... I am not nearly as old as you, and I have been completely bald for over a month now thanks to Majik's advice to me to get a Head Blade.

[tailchaser]

I just happened to be sorting through paper earlier today.... My mortgage had special provisions for the first month (due ON the first) whereas all future payments were due on the first, but not late until the 16th.

[sxk122]

You could just have tards like my new lender. My mortgage got sold to a new company and they want to charge me $6 a month to use online payment. Screw that. I mail them a check the 15th or so of the prior month. The largest annoyance is they don't mail me my statement until the 27th or so of every month so i have to use my own envelopes... humbug

[ckearns]

Your mortgage paperwork will have the final say on the due and penalty dates. I just finished a re-fi where the payment is due on the 1st and goes past due on the 15th. If they receive the payment any time in that window everything is golden. I don't pay anything on the 1st or 15th - the transaction volume through financial systems go through the roof on those days, and if there's an error I'd just as soon not get caught up in it. I shoot for the 5th to 10th and 20th to 25th for windows to get stuff done.

Having said that, my old mortgage started with countrywide in 2004 with the same 1st/15th rule and some time in 2008, there was a policy change - if the payment was received after the 9th there was an additional fee (but the loan payment still wasn't considered to be late). I forget if this was before or after the BofA acquisition, however. I suspect it had to do with very aggressive cash management practices during the liquidity crisis that brought the banking house of cards to the ground.

I don't believe the lender or servicer is allowed to change the terms of the contract once the contract has been executed, but there are things they can try to do around the periphery in order to nickel and dime you to death.

Chris

[POS Racing]

Looks like B of A has been busy.....

http://redtape.msnbc.com/2011/01/un-...eriod-fee.html

Some Bank of America mortgage customers will receive an unwelcome Valentine's Day gift when the bank's policy for grace period mortgage payments changes on Feb. 14. Essentially, it means those customers will have six fewer days to pay their mortgage each month without facing additional fees.

[CosmosMpower]

Luckily I don't use BOA, confirmed my grace period is till the 15th

[motorollow]

If you have very good credit you should try to get a mortgage with Chase. Your mortgage won't get sold umpteen times.

[sxk122]

i wish i could request my mortgage be sold.... lol

[Rebel]

I

If you have very good credit you should try to get a mortgage with Chase. Your mortgage won't get sold umpteen times.

It probably does, you just don't know it. Most of the major banks sell them off (see the most recent economic meltdown), they just keep the servicing. It appears that it hasn't been sold to the homeowner, but it has. Its why there has been so many problems modifying mortgages since the servicers (ie Chase, BoA, et al) don't actually own the loans anymore.

[patf]

with Chase you only get to call them once a month to make sure they correctly apply the payment. ugh...