Missed Mortgage Payments and Your Credit - How Are You Affected?
A good credit score is important for more reasons than just obtaining new credit. These days, it can factor into everything from landing a new job to getting the best deal on your insurance policies. For so many reasons you may not have even considered, it's more important than ever to avoid late payments on your mortgage! A 100 Point Drop from One Missed Payment? It’s true. A single 30-day-late mortgage payment can cause your score to drop by as much as a hundred points. Credit scoring algorithms vary based on many factors, and in some instances, the damage may be even greater and last for years. The Costs Accumulate At the time, a single missed payment will cost you only a late fee, but the expense really adds up on your next loan or missed opportunity. Low credit scores typically mean a higher rate and cost. Higher rates can mean hundreds of thousands of dollars of extra expense over the life of a loan. Missed Payments are Usually Unplanned Usually, events beyond our...