This is a period of time wherein you are not assessed a penalty for the late payment of your mortgage. Generally, lenders provide a 15 Day period after the due date of a payment before they assess any fees for the tardy payment.

Another 'Grace Period' that many people are not aware of is the 60-Day period after the transfer of a mortgage from one lender to another. Because of the difficulties that often result from transitioning from one lender to another, the law provides a 60-Day Grace Period to protect you. This means that a lender can't report any late payments to the credit bureaus during this period and may only report your payment as late if you remain behind on your payments after the expiration of this 60-Day Period.