Making prompt payments
If you know anything about credit, then you know that it is
important to repay promptly. Your mortgage, as a form of credit,
follows the same rules. Simply put, you must always make your
mortgage payments on time.
There are a number of reasons why it is important to do so. First
of all, your lender keeps track of your monthly payment record.
If you frequently make late payments, then it will be difficult
to refinance for a better interest rate down the road. Missing
mortgage payments is even worse. Late is always better than never.
If you know in advance that your payment will be late, get in
touch with your lender immediately.
Moreover, your lender reports your monthly payment record to
credit bureaus. That means that any mistakes you make are there
for the world to see. More specifically, they are there for your
future creditors to see. You might not qualify for low interest
rates on credit cards, a car loan, or other important purchases
if you do not demonstrate that you can successfully repay a loan.
A good way to make sure that your mortgage payments are always
prompt is to get in the habit of sending the check on the same
day each month. Be sure that you send it early enough to allow
for processing time, which varies from lender to lender.
Some companies now offer the ability to make mortgage payments
online or to have them automatically deducted on a certain day
each month. These are fantastic alternatives for people who value
convenience or for people who tend to be careless with bills.