Anonymous asked in Business & FinancePersonal Finance · 1 decade ago

Is there an advantage to paying my mortgage payment on the 1st instead of the 10th of the month?

I currently pay my mortgage payment on about the 10th of the month> I'm wondering if I am paying any more interest by not paying it on the 1st when the bank says it is due, but not late.

3 Answers

  • 1 decade ago
    Best Answer

    Yes you are paying more interest when you pay it late. The principle is not decreasing until the 10th. So interest is being charged on that full amount from the 1st to the 10th. Basically the amount that you are withholding is being charged interest from day 1-10.

  • 1 decade ago

    There is no advantage, so long as you pay the payment on time. You always pay your interest in arrears (meaning, this month's payment pays for last month's interest).

    Source(s): 10+ years in mortgage/finance business
  • npk
    Lv 7
    1 decade ago

    It IS late if you don't have the payment to them by the due date. The 10-day "grace period" is just for the late fee.

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