Bank of America to charge 'grace period' fee for some customers

New policy takes effect February 14, 2011

Traditionally, mortgage customers had a 15-day grace period in which they were allowed to make their mortgage payment, without incurring late fees and penalties.  However, Bank of America is changing its method in handling the 15-day grace period.  

Effective February 14, 2011, Bank of America will begin charging some customers a fee if they make their mortgage payment near the end of the traditional grace period.

In a notice of “Upcoming Change to Fees,” which was sent to customers recently, Bank of America advised that: “If your payment is due on the first of the month and you have a 15-day grace period, you can schedule your payment to be drafted prior to and including the ninth of that same month to avoid a service fee.”  However, “[i]f you schedule your payment to be drafted on or between the 10th and 16th of the month, you will be charged a $6 service fee that will be included in your total deducted amount.”

An exception to this new $6 service fee is by making your automatically drafted payment from your Bank of America checking or savings account, even if your payment is drafted on the 10th through the 16th of the month.

Leave a comment

You are commenting as guest.
  • Ways to save at closing

    Title charges are the largest chunk of closing costs and can vary by hundreds of dollars.

    Learn more

  • What are closing costs?

    The real estate closing process involves loan steps, legal steps and title steps.

    Learn more

  • What's title insurance?

    Insure your legal ownership just like you'd insure the building, but for lots cheaper.

    Learn more

Connect with us


Our blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. Rate tables and figures that appear on our blog are deemed reliable but not guaranteed. For current rates & policies, refer to our Quick Quote and Consumer Guide. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on our blog.