KimRaye
DIS Oldtimer and Threadkiller
- Joined
- Apr 29, 2001
- Messages
- 14,077
KerryD was very helpful and very knowledgable about mortgage payoffs to another DISer but, while reading the thread, it occurred to me that some people are somewhat mistaken (or misled) about the "Grace Period" on mortgage payments.
Trust me, there's nothing graceful about it. Sure, it doesn't show up as LATE on your credit report but, you ARE paying that much MORE interest every day! Whether it's a 7 day, 10 day, 14 day grace period, you're paying everyday! Think of what this means long-term, i.e. 30 year mortgage!
Think of it like this, if you pay extra principal every month, your loan is paid off earlier, right? (That's a fact) A large part of that comes from the fact you stop paying interest on that part of your principal balance as soon as your check arrives/clears. Thus, lower interest $$ than what the lender originally planned for you, over those 30 years.
jmo and small thought for the day.
Trust me, there's nothing graceful about it. Sure, it doesn't show up as LATE on your credit report but, you ARE paying that much MORE interest every day! Whether it's a 7 day, 10 day, 14 day grace period, you're paying everyday! Think of what this means long-term, i.e. 30 year mortgage!
Think of it like this, if you pay extra principal every month, your loan is paid off earlier, right? (That's a fact) A large part of that comes from the fact you stop paying interest on that part of your principal balance as soon as your check arrives/clears. Thus, lower interest $$ than what the lender originally planned for you, over those 30 years.
jmo and small thought for the day.
