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How Being Late on Monthly Payments Can Affect Your Mortgage

Aug 10, 2023 | Avoiding Forclosure, Mortgage

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Are you the type of person that struggles with remembering to pay their bills on time? You’re not alone. People across the country regularly submit late monthly payments, inflicting terrible damage to their credit. Let’s take a quick look at how paying your mortgage or other monthly payments late can have a negative impact on your mortgage.

Your Credit Score Is At Risk

As you already know, almost all banks, credit cards, mortgage companies and other lenders rely on your credit score to help assess the risk of lending money to you. Paying any of your payments late – even something as small as your mobile phone bill or a department score credit card – can result in negative remarks showing up on your credit score. If you are late enough times, or fail to repay the late payment in full, then your score will start to drop.

Refinancing Can Be Affected

If you already have a mortgage, then a lower credit score can be a problem when you try to refinance. The process of refinancing involves taking out a new mortgage, in which your lender will reassess your risk using your credit score as one of the indicators. If you have been making late payments, you might end up having to settle for a higher interest rate or you may even be declined for the new mortgage.

Making A Late Payment? Contact Your Lender

If you are caught in a bind and have to make a late payment, it is best to get a call in to your lender as soon as possible. First, there may be a grace period in which you can be a few days late without any penalty. If that little bit of breathing room is all you need to get caught up, you’re set. If not, you can let them know your circumstances and discuss what options you have.

It is essential to pay your monthly payments on time, even if it means making some small sacrifices in other areas. The better your credit score looks, the more opportunities you will have to make positive financial moves in the future.

If you are considering selling your home, be sure to contact us at (616) 805-9696 or email us at joel@jtkpropertysolutions.com so we can provide you with a Fair Cash Offer on your Grand Rapids house.

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Recent Testimonial

  • D T

    Great to work with JTK! The team communicates well and keeps everyone in the loop. They helped out and got the work done. They really help people out of tough spots and offer other solutions when not a good fit just to try and help. Joel and his team know the market and are extremely professional.

  • Courtney Van Horn

    Honestly, there aren't better people in this industry. Amber and Joel communicate very well and work so hard with their clients to ensure a smooth transaction. They are genuine people who understand real estate and all the good and bad that comes with it. 5/5 would highly recommend!

  • B Stewart

    JTK are awesome to work with! I purchased my very first investment property from JTK and they were great. With it being my first, they were very helpful and patient thoroughout the process. Amber even followed up after the purchase to see how things were progessing. I am certain we will do business again!!!