I have a 2nd mortgage with Etrade. The payment is due on the 1st and after the 15th is late; and a late fee would be applied. However, the difference here is that they apply additional interest from the principal portion for each day the payment is received after the 1st of the month. So from the 1st to the `15th, additional interest is taken from the principal portion and added to the interest portion like it is a late charge, but they don't call it a late charge. If the payment is received after the 15th, an additional late charge, which they call a late charge, is also applied. My issue is with the additional daily interest for payments received after the 1st. I have read my paperwork from closing and cannot discern any language that describes or allows this practice. Wells Fargo is my 1st mortgage holder and they do nothing of the sort. Is this legal? Thanks for a response in advance.