When Does a Late Mortgage Payment Get Reported?

Even one late mortgage payment can drop your credit score by 50 points or more. Once it’s 30 days past due, a payment is usually reported as “late” to the credit bureaus. 

Setting up autopay from a bank account is the best way to ensure on-time mortgage payments. However, sometimes financial setbacks are unavoidable and you need to pay late. Here’s a closer look at when a late mortgage payment gets reported. (Hint: it’s not right after your due date.) 

When is your mortgage payment considered late?

Most mortgage payments are due on the 1st of the month unless your loan agreement says otherwise. If you don’t pay by then, here’s what typically happens:

• Days 2-15: This is your grace period. If you pay during this time, there are no late fees or credit reporting.
• Days 16-30: Late fees may apply, but nothing is reported to the credit bureaus.
• Day 31: Your payment becomes “30 days late” and is reported to credit bureaus.
• Day 36: Your mortgage loan servicer will try to contact you about making your payment.
• Day 45: A person is assigned to your loan to help you sort through your assistance options. You will also receive a written notice of your loan being past due. 
• Day 61: Your payment is reported as “60 days late.”
• Day 91: Your payment is reported as “90 days late.”
• Day 121: Your servicer may initiate the foreclosure process.

Many lenders have a grace period, which gives you more time to pay without incurring late fees. The standard grace period for mortgage payments is 15 days. So if your mortgage payment is due on the 1st, you generally have until the 15th to pay without penalty.

After the 15th, your mortgage payment is considered late. You then have until the 30th of the month (so 15 more days) to pay, plus any late fees, before your payment becomes “delinquent” and is reported to the credit bureaus. 

There are different levels of delinquency—30 days past due, 60 days past due, 90 days past due, and so on. The longer your account is delinquent, the worse it hurts your score, and the closer you get to foreclosure. 

What happens if you pay your mortgage during the grace period?

Any mortgage payments made within the grace period are considered on-time. You won’t incur late fees, and your credit score won’t get dinged. Grace periods are usually 15 days, but check your loan documents or contact your lender for your specific time frame. 

How late can you pay your mortgage before it affects your credit?

Mortgage lenders typically report late payments to credit bureaus when they’re 30 days past due. So if your mortgage is due on the 1st, you have the rest of the month (until the 31st) to pay it before it impacts your credit score.

Late payments remain on your credit report for up to seven years. Keep in mind that the longer your payment is overdue, the worse the impact on your credit:

• 60 days late: This is considered more serious than 30 days and can hurt your score even more.
• 90 days late: At this point, you’re facing severe credit damage and potential legal action from your lender.
• 120+ days late: Your lender may start foreclosure proceedings.

If you’re struggling to make payments, contact your lender immediately. They may offer options to help you avoid credit damage and keep your home.

Generally, you cannot remove late payments that have accurately been reported on your credit report. In some cases, such as a hardship or first-time offense, your lender may accommodate your request. Contact your lender as soon as possible about this request via phone or by sending a goodwill letter with information explaining the reason for the late payment. 

Chloe Moore, CFP®

What happens if you miss a mortgage payment?

Missing a mortgage payment can have both immediate and long-term consequences. In the short term, you may have to deal with: 

• Late fees. Most lenders charge a late fee if you miss your payment and the grace period ends. This can be a flat fee or a percentage of your monthly payment amount. 
• Additional interest. Mortgage interest continues to accrue on your unpaid balance, increasing the total amount you owe. 
• Potential credit reporting. Late payments could hurt your credit score. 

Long-term, having a late mortgage payment can lead to these issues: 

• Damage to credit score. A single 30-day late payment can lower your credit score by 50 points or more, depending on your starting score. Higher scores often see a bigger drop.
• Difficulty getting future loans. Late payments can make it harder to qualify for future loans or credit cards, and you may face higher interest rates if you do qualify.
• Risk of foreclosure. If you consistently miss payments, your lender may start foreclosure proceedings. This typically begins after you’re 120 days late, but the exact timeline can vary by state and lender.

 Late payments don’t just affect your ability to get approved for future loans. They can also:

• Make it harder to rent an apartment
• Affect job applications, especially for positions that involve handling money
• Result in higher insurance premiums
• Make it difficult to open new utility accounts without a deposit

To rebuild your credit after a late payment, first, review your finances and take steps to ensure this won’t happen again. From there, follow best practices like making on-time payments going forward and paying down debt. It may take months—or possibly years—before you see a significant improvement in your credit score.

Chloe Moore, CFP®

Late fees and unpaid late fees on mortgages

Mortgage lenders typically charge late fees when you miss your payment deadline and grace period. These fees are a penalty for late payment and an incentive to pay on time.

Lenders usually charge late fees in one of two ways:

• Percentage fee—This is typically a portion of your overdue payment. For instance, if your monthly payment is $2,000 and the late fee is 5%, you’d owe $100.
• Flat fee—Some lenders charge a set amount, regardless of your payment size. This could be $20, $50, or more, depending on your loan terms.

Unpaid late fees may be added to your next mortgage statement, and the amount due may be increased. For instance, if your regular monthly payment is $2,000 and you incur a $100 late fee, your next payment due would be $2,100 ($2,000 + $100). 

In some cases, you can use a credit card to pay your mortgage if you need more time, but this option comes with risks and potential fees.

How long does a late mortgage payment affect your credit score?

A late mortgage payment can impact your credit score for up to seven years. That’s how long it stays on your credit report. 

According to a study by Milliman, a single 30-day late payment can drop your credit score by about 50 points on average. The study also found that:

• The more payments you miss, the bigger the impact. Borrowers who missed multiple payments saw their scores drop by an average of 112 points over two years.
• Many borrowers’ scores had already dropped before their first missed payment, suggesting other financial issues were at play.
• Most delinquent borrowers (about 66%) missed three or fewer payments in a two-year period.

So, what do you do if you’re having trouble making mortgage payments? The key is to act quickly. The sooner you address the issue, the more options you’ll have to protect your credit score and keep your home. There are ways to get help: 

• Find a HUD-approved housing counselor to talk to for advice.
• Ask your mortgage loan servicer if you qualify for forbearance (temporary pause in payments), a loan modification (permanent change in loan terms), or a repayment plan. 
• Sell your home or consider a short sale if you owe more than the home’s worth.

If none of these options work and you’re at risk of foreclosure, look into a deed-in-lieu-of foreclosure, where you voluntarily transfer your property to the lender as a last resort.

If you’re falling behind on your mortgage and have other debts, inventory all outstanding debt. See if there are ways to increase your income, reduce expenses, or both, so you have the best opportunity to get your debt under control. If necessary, notify your lenders about your financial problems so they can work with you on a solution.

Chloe Moore, CFP®

FAQ 

When does a late mortgage payment get reported?

A late mortgage payment is typically reported to the credit bureaus if it’s more than 30 days past due. Payments made before the 30-day mark will not affect your credit score, although you may still incur late fees.

If you pay your mortgage on the 31st, is it late?

If your mortgage payment is due on the 1st and you pay on the 31st, it’s considered late because it’s past the due date. The payment likely won’t fall within the grace period, typically 15 days from the due date. So, the grace period would end around the 16th of the month. 

Paying on the 31st would be considered late, and you would likely incur late fees, but it may not be reported to credit bureaus yet. Most lenders report late payments to credit bureaus after they’re 30 days past due. Always confirm your specific grace period with your lender to avoid penalties.

What happens if you miss one mortgage payment?

Missing one mortgage payment can lead to late fees and, if it’s 30 days overdue, a negative mark on your credit report. It’s important to communicate with your lender to explore repayment options before it has a significant impact on your finances.

Does paying my mortgage during the grace period affect my credit?

Paying your mortgage during the grace period does not affect your credit score. Grace periods tend to last around 15 days past the due date, allowing you to make your payment without penalties or credit reporting.

What happens if you pay your mortgage late?

Paying your mortgage late can result in late fees, potential damage to your credit score if more than 30 days overdue, and a possible risk of default if the pattern continues. Communicating with your lender early can help you avoid serious consequences.

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