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How Long Will it Take to Repair Credit After Late Mortgage Payments?

how long to repair credit

Prioritize the mortgage payment to protect your credit score.

In Terms of Time

Your mortgage becomes delinquent when it is 30 days late. Mortgage companies typically expect payment on the first of the month, and allow approximately a 15-day grace period before charging a late fee. Lenders must allow at least a 10-day grace period on owner-occupied single-family home loans in California and charge no more than 6 percent of the payment amount as a late fee. Lenders may charge more for other property types -- up to 10 percent. Lenders report a delinquent mortgage to the credit reporting bureaus when you reach the 30-day mark, thereby impacting your credit scores.

A Matter of Time

A borrower with excellent credit -- 720 or higher -- loses about 100 points after a single 30-day late payment. A borrower with good credit of 680, however, loses 60 to 80 points after one missed payment. Sixty, 90, 120, or more days of

missed payments further diminish scores, although each missed payment after the initial 30-day late has less of an impact on your points. A 680 borrower can expect to bounce back in 9 months, whereas a 720 borrower will take 2.5 years and a borrower with a previous score of 780 takes 3 years to recover.

Another Penalizing Event

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