A grace period is an amount of time after the due date of a mortgage payment that the homeowner has to pay the installment without penalty or fees. Most banks will work with their homeowners to make sure their accounts stay current. Different banks have different policies on when exactly a payment is considered late. Failure to pay the mortgage installment after this grace period has ended can result in the lender reporting your account to the credit agencies, which can negatively affect your credit score. When buying a new home, it's best to get the grace period you have to make your mortgage payment in writing, so there is no confusion between the lender and homeowner. Most grace periods today are at least 15 days. Loans that make it to 30 days past due will most likely be reported as late by most lenders.