Grace Period
Lending & MortgagesThe time after a payment due date during which no late fee or penalty is charged.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding grace period helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how grace period impacts your specific situation.