Life gets busy, and sometimes things slip through the cracks — including a mortgage payment. Whether it's due to financial challenges or just a simple oversight, it’s something that can happen to anyone. Still, missing a payment can have real consequences, like late fees or a hit to your credit score.
Did you know:
- A single late mortgage payment can have a noticeable impact on your credit score.
- Since payment history is the most influential factor in credit score calculations, staying current is essential to protecting your credit.1
Newrez is committed to helping you stay on track and avoid the downsides of late payments. Keep reading to learn how you can stay current and in control.
How to avoid paying late
1. Know the due date — and the grace period.
With most traditional mortgages, your payment is due by the end of the business day on the scheduled monthly due date, which is commonly the first of the month. You can find your payment’s due date on the online portal or on your billing statement. It's a good idea to pay earlier or by your due date to ensure your payment is processed on time, reducing the risk of a late fee or credit impact.
If you're unable to make your mortgage payments on time, most loans offer a 15-day grace period. During this time, your payment is considered late, but you won’t be charged a late fee if it’s received and posted by the end of business on the 16th day of your payment cycle. Keep in mind that late fee policies can vary by state, so it’s important to review your loan documentation for specific details.
While the grace period offers a buffer, it's best not to rely on it regularly. Making your mortgage payment on or before the due date helps you stay on track financially and avoid unnecessary stress. Use the grace period only when necessary.
2. Understand late fees.
If your mortgage payment is not received by the end of the grace period (typically the 16th of the month), a late fee will be applied.
Be aware a late fee can be as high as 5% of your past due amount. For example, a missed payment of $1,800 could result in a $90 late fee. To learn more, please visit our fee hub.
3. Pay by autodraft.
Make mortgage payments one less thing to worry about by signing up for autodraft (also called autopay or ACH withdrawal). Once enrolled, your payment is automatically pulled from your bank account on the day you choose — monthly, semi-monthly or bi-weekly. Get started by logging into your account, go to Account Details to access your dashboard and click Schedule Recurring Payments to set up your preferred payment plan.
Autodraft makes paying your mortgage easy, but it’s important to ensure your bank account has enough funds on the scheduled draft date. If a payment is attempted and your account doesn’t have sufficient funds, you could incur overdraft fees from your bank, nonsufficient funds (NSF) fees from us and possibly late fees.
Helpful tip: To avoid this, consider scheduling your autodraft a day or two after your usual payday. That way, your account is more likely to have the funds available when the payment is processed.
Read this article for more information about the benefits of autodraft.
4. Double check your bank account information.
One of the most common reasons for late mortgage payments is a simple mistake, entering incorrect bank account or routing information during setup. To avoid delays and potential fees, always double-check your account details to ensure everything is accurate before submitting.
5. Set up reminders.
If you don’t want to set up autodraft and you’d rather make your payments manually, it’s a good idea to set up reminders in your phone or mark them on your calendar so that you remember to pay.
Helpful tip: On whatever day you have designated to make your mortgage payment, try to submit it early rather than waiting until the end of the day. Taking care of it first thing helps avoid any last-minute issues or delays.
Learn more about our payment options on our Payment Hub.
6. Be aware of our cutoff times for payment processing.
Keep in mind that our payment systems have daily cutoff times. Payments received after these times will be processed the next business day.
- Mailed payments must be received by 3:00 p.m. EST.
- Online and phone payments must be submitted by 11:45 p.m. EST.
To avoid delays or late fees, be sure to make your payment before the applicable cutoff time.
7. Review your spending and cut non-essential costs.
When finances are tight, take a moment to review your monthly expenses and identify areas where you can cut back. Your mortgage payment should remain a top priority. You may also consider ways you can quickly make more money to afford your expenses.
8. Call us.
We understand that financial challenges can be difficult to talk about, but we’re here to help. If you’ve made a late payment, or even if you’re concerned you might, don’t hesitate to call us at 866-317-2347. We can also refer you to generally no-cost or low-cost financial counseling services in your area.
If your question isn’t pressing, we encourage you to log into your online account and use the live chat function on your dashboard to speak with an online associate.
What to do if your payment is already late
If you’ve already missed your due date, there are still steps you can take to reduce the impact. Acting quickly can help you avoid additional fees and keep your account in good standing.
- Reach out to us. Call us immediately at 866-317-2347 to discuss your situation.
We’re here to listen and work with you to find a solution that fits your needs. In many cases, we can offer flexible options to help you stay on track. - Try to pay before the end of the month. Whether or not a late fee applies, it’s important to know that we don’t report late payments to credit bureaus until they’re 30 days past due. This offers you a bit of extra time to make your payment before it affects your credit score.
Even a single late mortgage payment can impact your credit score and lead to added costs. If you're concerned about missing a payment, give us a call at 866-317-2347. We're here to help you explore options and find a solution before it becomes a bigger issue.
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