Understanding mortgage payment grace period

[EaglesFan2006]

I was taking to someone about this and I have a question about the grace period... which seems to say no late fee would be charged until after 15 days. What is the point of this exactly? Does it essentially mean there’s no real negative to paying your mortgage on the 15th every month, other than if you do that you run your own personal risk of falling out of budget and create a nightmare? I’ve always paid mine the last payday of the month before the 1st, which is always 5-7 days early. I plan on keeping that up, but I’m interested to know what risks there really are I’d you pay on the 10th instead the 1st, just in case I ever fall into a bad timing spot.

[EaglesFan2006]

Adding to that I also get my new mortgage statement on like the 3rd of the month, so that’s well before any grace period would end. So wouldn’t that impact it? I guess I just don’t really understand it

[NC_Mtg_Loaner]

Your mortgage is due on the 1st each month. 

You can pay them anytime up to the 15th of the month without any penalty.  So the 2nd to 15th is considered your grace period.   Should your payment be received and credited by your lender be aware that a late fee can be charged.  Refer to your originally promissory note, your Final CD or consult with your lender (or read your statement thoroughly) for the amount they're able to charge.  I have seen some servicers 'sandbag' those fees to unprospecting customers which can sabotage any refinance opptys or early payoff strategies, so be careful and aware of the day your loan servicer actually credits your account. 

With that being said, as long as you pay before the 30th of the month the lender may only charge you that late fee but won't notify the bureaus that your payment is 30 days late which is something you just want to avoid if at all possible, naturally.

[EaglesFan2006]

Thanks for the reply, makes total sense. I had no plans to mess with it since I’m in a hung-ho budgeting/debt reduction mode... my friends question just piqued my interest. Sure sounds like it’s not worth the stress.