I got a collection call from my Mortgage lender (Wells Fargo).. It is the 5th of the month. They ask me if I want to make a instant telephone payment right away to avoid a late fee. (The late fee is charged if the payment doesn't reach them by the 15th.) I ask them what is the charge to make a telephone payment? They tell me $20.00. Why would I do a telephone payment when my late fee is only $5.00? They tell me "To insure a good credit rating".. gee.. I thought I need to be 30 days late in order for them to report me. Can a mortgage lender report you for being 10 or 12 days late with payment? I recall I think some lenders make notations mentioning excessive use of grace period. I am not sure if they still do that. ALSO.. Isn't it misinforming the consumer telling them to insure good credit they should make a telephone payment immediately? If you mail the payment or use Online billpay and send the payment after the call took place (5th or 6th of the month) the lender will usually have the cash in a few days. At which there will be no late fees and no telephone fees. Also, if the telephone fee is $20 VS the $5.00 late fee, wouldn't it make more sense to just take the late fee? Don't get me wrong.. If it was the 27th, 28th or 29th of the month.. I can see doing a telephone payment, but not for day 5, 6, or 7.
I doubt your late payment fee is $5. You may want to check that out. More than likely, your phone payment fee would be less than your late fee. Plus, if you're late with WF, they are more likely to not issue you a line increase or rate decrease in the future. Also, be sure you won't lose out on any special interest rates you may be receiving. When you're late, you default back to the higher interest rate possible.
I think you might be misunderstanding my post.. We are talking about a 30 year fixed mortgage. Not a credit card. My late payment fee is $5.00. Isn't $5.00 the standard late fee for most mortgages? There's no Default rate on a 30 year fixed. Nothing in my loan papers about a default rate. I don't want another loan with WF again. Too many problems with family and friends. My question is are you TECHNICALLY late if you use the 15 day grace period?
Maybe not TECHNICALLY , But you may want to consider that even if you mortgage has no defaut rate...Other lenders (credit cards) are hungry for fees and high interest rates. They can and will jack up your rates if they review and see that there is almost any reason...Caution! I think you may be playing with fire. If you are carrying high balances on credit cards also.
As a "general" rule of thumb - the cost you incur for postage, paying bills, accounting fees, etc., can be deducted from your federal income taxs most of the time. If you have a small business it's vastly easier. But you can do it as unreimbursed business expenses as an individual, too. Thesis means that since you're going to write off the cost of the telephone payment (just like you'd write off postage if you mailed the payment) that some portion of that payment will be offset or 'made' for you by the IRS.
The bottom line is that it's always better to pay ontime than it is to pay late. The late payment on a mortgage is a SERIOUS delinquency to deal with. Future mortgage lenders may be loath to give you money for another mortgage if you have a bunch of late mortgage payments.
on the other hand, no one gives a **bleep** if you paid it by phone and got the payment in under the wire! Just so it's on time. That's all that counts!
Hope this helps put it in some perspective for you.
Pay the mortgage on time whenever you can humanly do so. The phone company and the power company will always take a portion of what you own them. The mortgage company will NOT do so!
My own credit wouldn't let me get a mortgage loan for a hell of a long time. Be careful with your credit. It CAN BITE YOU WHEN YOU LEAST EXPECT IT!