What’s the difference between mortgage forbearance and deferment? It comes down to interest and repayment methods

Published on:

During the coronavirus pandemic, many lenders are offering either mortgage forbearance or deferment, which are both types of relief that allow you to pause or reduce monthly payments. Interest always accrues while payments are in forbearance, and interest sometimes keeps building with deferment. Forbearance typically requires you to repay the paused amount in a lump sum at the end of the forbearance period; deferment lets you make repayments over time. During the pandemic, you’ll often hear these two terms used interchangeably, so be sure to ask your lender about the terms of your mortgage relief before enrolling. Read

Read more    Source: businessinsider.com

Leave a Reply