Someone told me that if I miss a payment on my mortgage the company that holds my mortgage can't do anything but charge me a late fee. Is this true, or would I face more consequences than that?If I miss a payment on my mortgage can they change my interest rate?
If you miss a payment, you pay a late fee along with the missed payment. If you miss a couple of payments (and the first one is 45 days late), they can report you to the credit reporting bureaus. If you miss a third payment, they can file a default notice, which is the first step in the foreclosure process.
The can't change your rate for missing a payment. The only people who can do that are credit companies who might have given you 0% or ';same as cash'; financing on some purchase (not real estate), with the terms of the financing being that they can charge full interest on the entire amount borrowed if even one payment is late.If I miss a payment on my mortgage can they change my interest rate?
In most cases, they just charge you a late fee, however, to be sure, you need to read the contract you signed to find out what kind of penalties you can incur for your particular mortgage.
They can't change your rate if you signed a 30 year fixed. But they can take your home from you if you miss multiple payments.
If you are just late you will have fees and extra interest accrue quickly.
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