I have a 6 conventional fannie mae back loans on my different 1-4 unit properties. The due date on my bills state the payment is due on the 1st of the month. When do I actually need to make the payment by to not incur a penalty? And then if for example I paid my loan serviced by citibank on the 5th vs the 1st of the month would I be charged interest for those 4 days beyond 1st?
Currently most of my rental income comes in around the 5th of the month so I have 5 day period were i get debited a huge amount for all the mortgages and then have to wait a couple days to get a corresponding rental credits.
Usually on the 15th but each lender might have different policies. I would call each one and double check. I pay mine on the 13th just to be on the safe side.
Originally posted by @Jim Shepard :
If you are using the grace period every month it will effect your credit score. I would rethink not paying on the first. I was just talking to a REI that owns 64 SFH's. All his leases are due on the 25th and late on the 1st. He says it works great. Not sure my tenants would go for that though?
Doesn't it only affect your credit score if you are 30+ days late?
Mortgages usually have a grace period for the first 15 days of the month. Paying anytime during the grace period does not affect your credit score. Your score is only affected if you pay more than 30 days late. So if you miss paying by the 15th, you'll incur the late fee, but your account will be considered current as long as you pay by the end of the month.
By the way, it should state somewhere on your monthly statement the last day you can pay without incurring a late fee.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!