dcsimg
We research, you save.
Got Questions On Rates? (855) 610-2972

Does it benefit me to make my mortgage payment 25 days early each month?

By   |  Posted in Ask The Expert

Q: Does it benefit me to make my mortgage payment 25 days early each month?

A: Unless the mortgage lender is actually posting the payment when you send it, the answer is no. Your payment is required to be in the lender's hands by a given due date, and any payment you send before that date will be applied by/on that due date. Think of it this way: A payment is due by the 6th of the month. Your payment is applied; five days later, the next payment you send arrives. It's not due until the 6th of the next month, and the lender will process this as though it came in right on schedule.

Standard loan amortization means your loan is set up on a monthly compounded arrangement, with a payment due in each of 360 monthly periods (30 year term). As long as a payment arrives during each 30-day window, it will be processed as that month's due payment. If mortgages were compounded using a different method--daily compounding, simple interest, etc.--it might have some effect, but that's not the case here.

More help from HSH.com

  • Mortgage Rates Radar 05/24/2016: Mortgage rates see upward bump

    HSH.com releases its latest Weekly Mortgage Rates Radar showing a small increase in popular mortgage rates during the seven-day period ending May 24, as minutes from the most recent Federal Reserve meeting suggests that a change in short-term rates may come sooner than later. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • The salary you must earn to buy a home in 27 metros

    Here’s how much salary you would need to earn in order to afford the median-priced home in your city.
  • Mortgage Rates Radar 05/17/2016: Mortgage rates flat

    HSH.com releases its latest Weekly Mortgage Rates Radar showing virtually no movement in popular mortgage rates during the seven-day period ending May 17, as financial markets are mostly directionless at the moment. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • Mortgage Rates Radar 05/10/2016: Mortgage rates wander downward

    HSH.com releases its latest Weekly Mortgage Rates Radar showing a modest decline in mortgage rates in the seven-day period ending May 10, as financial markets settle in to a quiet period with little economic data to consider. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • Mortgage Rates Radar 05/03/2016: Mortgage rates mostly steady this week

    HSH.com releases its latest Weekly Mortgage Rates Radar showing almost no change but perhaps, the beginning of another decline in popular mortgage rates during the seven-day period ending May 3, as the financial markets turn their focus from the Federal Reserve to incoming data. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).