What would trigger a penalty for late mortgage payment?

A penalty for a late mortgage payment typically occurs when a payment is made after the grace period has ended. The grace period is a specified period during which a borrower can make their payment without incurring a late fee. Once this period expires, the payment is considered late, and the lender will often impose a penalty. This policy encourages timely payments and helps cover any administrative costs associated with late payments.

Payments made within the grace period would not incur penalties, and pending payments indicate that a transaction has not yet been completed, thus will not result in a penalty. Similarly, missing the due date by less than five days can sometimes still fall within the grace period, depending on the lender’s specific policies. Therefore, the only situation that directly results in a late payment penalty is one where the payment is made after the grace period has concluded.