Posted on: 27th May, 2004 10:54 pm
Grace period refers to the time period between the due date of a mortgage payment and the day on which the lender charges late fees. Usually grace period covers a time frame of 15 days. Mortgage payments are generally due on the first day of the month and delinquent on the 15th.
Grace periods are applicable in case of mortgages on which the interest is calculated on a monthly basis and not those on which the interest accrues daily. The period is notified in the mortgage note as a part of the terms of the loan agreement.
The grace period gives borrowers some more time to clear off their mortgage dues. Thus, they can avoid late fees and any accrued interest on account of delay in payment.
Grace periods are applicable in case of mortgages on which the interest is calculated on a monthly basis and not those on which the interest accrues daily. The period is notified in the mortgage note as a part of the terms of the loan agreement.
The grace period gives borrowers some more time to clear off their mortgage dues. Thus, they can avoid late fees and any accrued interest on account of delay in payment.
I am paying off my mortgage on the 29th. The payment was due the 20th.I had a grace period of ten days , after that a late charge would be assessed. Emc is charging me the interest for April, plus an extra $18,42 per day for the nine days and $32.42 if it is 1 second past 2 o'clock.My coupon says that I should owe only 32.00 late fee.
EMC 's charges are illegal since my payment was due the 20th and I informed them I was refinancing.I was never notified of a change in fees. My payment coupon states I owe $33. after the 30th not the amount they specified. Who is right?
Hi
If you're allowed a grace period of 10 days, you shouldn't have been charged a late fee. Since you made the payment before the 30th i.e. within the grace period of 10 days, you shouldn't have been required to pay a late fee. Have you asked for an explanation from them as to why they charged the late fee even though you paid within the grace period?
If you're allowed a grace period of 10 days, you shouldn't have been charged a late fee. Since you made the payment before the 30th i.e. within the grace period of 10 days, you shouldn't have been required to pay a late fee. Have you asked for an explanation from them as to why they charged the late fee even though you paid within the grace period?