What remitting a payment means

Remitting a payment means sending money to your mortgage lender to cover your monthly principal, interest, taxes, insurance, or any combination of those. It is the act of transferring funds — whether by check, electronic transfer, or automatic deduction — from your bank account to your lender's account. Most homeowners remit the same amount every month on the same date, though some choose to pay extra toward principal or catch up on missed payments.

Your lender will tell you exactly how much to remit and by what date each month. This amount appears on your mortgage statement, often labeled as "total payment due" or "amount due." If you have an escrow account (which holds money for property taxes and homeowners insurance), your lender collects that as part of your remittance and pays those bills on your behalf.

Key Takeaways

  • You can remit payments by check, automatic bank draft, online portal, phone, or wire transfer — your lender will accept at least two of these methods.
  • Set up automatic payments through your bank or your lender's website to avoid late fees and ensure the payment arrives on time.
  • Your payment due date is set in your loan documents; paying after that date triggers a late fee, even if your lender receives it within a grace period.
  • Sending extra money toward principal reduces the total interest you pay over the life of the loan, but confirm your lender will not hold it in a suspense account.
  • Keep records of every payment you remit, including confirmation numbers or bank statements, in case a payment is lost or misapplied.

Payment methods your lender accepts

Most lenders accept at least three ways to remit a payment. The most common are automatic bank draft (also called autopay), online payment through the lender's website or app, and check by mail. Some lenders also accept phone payments, wire transfers, or in-person payments at a branch office.

Automatic bank draft is the fastest and safest method because the money leaves your account on a date you choose and arrives at the lender on a predictable schedule. You set it up once through your lender's website or by phone, and it repeats every month without action from you. Online payment through the lender's portal gives you control over the exact date and amount each time, which is useful if you want to pay extra or adjust the timing. Check by mail is slower — allow 7 to 10 business days for delivery — and requires you to remember to send it, but it leaves a paper trail.

Ask your lender which methods they offer and whether any carry a fee. Most do not charge for automatic draft or online payment, but some charge a small fee for phone or wire payments. Your mortgage statement usually lists the payment address and accepted methods.

Setting up automatic payments to avoid late fees

The easiest way to remit on time every month is to set up automatic payments through your bank or directly with your lender. Your bank's bill pay service can send a check automatically on a date you choose, or your lender's website usually has an option to enroll in automatic draft, which pulls the payment directly from your checking account.

When you set up automatic payments, choose a date that gives you enough time to cover the payment from your paycheck. Many homeowners choose the 1st or 15th of the month. Your lender's due date is the deadline — if you set automatic payment for the 5th and your due date is the 1st, you will be late. Check your loan documents or statement for the exact due date, then set the automatic payment for at least two business days before that date to account for processing time.

Automatic payments do not mean you can ignore your account. Check your bank statement each month to confirm the payment went through. If your lender changes the payment amount (because property taxes or insurance increased), you may need to update your automatic payment to match. Some lenders send a notice when the amount changes; others do not.

What happens if you pay late

Your mortgage contract specifies a due date and usually includes a grace period — typically 10 to 15 days after the due date. If you remit after the due date but within the grace period, your lender will charge a late fee but will not report the late payment to credit bureaus. The late fee is a percentage of your monthly payment, often 4 to 5 percent, though your loan documents state the exact amount.

If you remit after the grace period ends, your lender reports the late payment to credit bureaus, which damages your credit score. After 30 days late, the damage is significant. After 60 or 90 days, your lender may begin foreclosure proceedings. Even one late payment can raise your interest rate on other debts and make it harder to borrow money in the future.

If you know you will be late, contact your lender before the due date. Some lenders offer forbearance (a temporary pause or reduction in payments) or can work out a catch-up plan. Waiting until after you are late makes those options much harder to access.

Paying extra toward principal

You can remit more than your required monthly payment, and the extra money goes toward principal — the amount you originally borrowed. Paying extra reduces the total interest you will pay over the life of the loan and shortens the time until the loan is paid off. Even an extra $50 or $100 per month adds up significantly over 15 or 30 years.

Before you start paying extra, confirm with your lender that the extra money will go toward principal and not be held in a suspense account. Some lenders automatically apply overpayments to future months' payments instead of reducing principal. Call your lender's payment department and ask how to designate an extra payment specifically for principal reduction. Some require a written request or a note with your payment; others have an option in their online portal.

If you remit a lump sum — such as a bonus or tax refund — toward principal, keep the confirmation number and follow up with your lender to verify it was applied correctly. Mistakes happen, and you want proof of what you sent and when.

Catching up on missed or late payments

If you have fallen behind, you have several options depending on how many payments you have missed. If you are one or two months behind, you can remit the overdue amount plus your current month's payment in one lump sum, or you can ask your lender about a catch-up plan that spreads the overdue amount across several months while you continue making regular payments.

If you are three or more months behind, contact your lender immediately. Many lenders offer forbearance, which temporarily reduces or pauses your payment while you get back on track. Forbearance does not erase the debt — you still owe the money — but it gives you breathing room. After forbearance ends, you remit a higher payment to make up the difference, or the lender may add the paused amount to the end of your loan.

Do not ignore missed payments. The longer you wait, the more fees and interest accumulate, and the closer you move toward foreclosure. Your lender would rather work with you than foreclose, so call as soon as you know you will miss a payment.

Keeping records of your remittances

Every time you remit a payment, keep a record. If you pay by check, photograph the front and back of the cancelled check or save your bank statement showing the payment cleared. If you pay online or by automatic draft, save the confirmation number and the date the payment was processed. If you pay by wire transfer, keep the wire receipt.

These records protect you if a payment is lost in the mail, misapplied to the wrong account, or if your lender claims you did not pay. Mortgage servicers sometimes make mistakes, and a cancelled check or confirmation number is proof that you remitted the money on time. Keep records for at least seven years — the length of time a late payment stays on your credit report — or for the life of the loan if you plan to refinance.

If you notice a payment is missing from your account statement, contact your lender immediately. Do not assume it will show up later. Ask them to search their records for the payment and provide a written explanation if they cannot find it.

Frequently Asked Questions

Can I remit my mortgage payment to a different address than the one on my statement?

No. Always remit to the address your lender provides on your statement or website. Sending a payment to the wrong address can cause it to be lost or delayed, and you may be charged a late fee even though you sent the money on time. If you are unsure of the correct address, call your lender before you send the payment.

What if I want to remit twice a month instead of once?

You can remit more frequently, but confirm with your lender how they will handle it. Some lenders apply bi-weekly payments to principal automatically, which saves interest over time. Others hold the extra payment and apply it to your next regular due date. Ask your lender whether they offer a bi-weekly payment plan and whether it requires a separate setup.

Do I have to remit the exact amount shown on my statement?

You can remit more than the required amount, but you should not remit less unless your lender has approved a modified payment plan. Remitting less than required counts as a partial payment and may not satisfy your due date. If your payment amount changes and you disagree with the change, contact your lender to discuss it before you remit a different amount.

What if my lender was sold to a different company?

When a mortgage is sold, your new lender will send you a notice with the new payment address and instructions. Continue remitting to your old lender until you receive that notice and confirm the new address. After the transfer, remit to the new lender's address. Your payment history transfers with the loan, so you will not lose credit for payments you made to the previous lender.

Can I remit my payment online if I do not have a bank account?

Some lenders accept payments by money order or cashier's check by mail, or by debit card through their website. Call your lender and ask what options are available for customers without a bank account. Money order payments take longer to clear, so mail them early to avoid a late fee.