Mortgage deferment and mortgage forbearance allow borrowers to temporarily stop making monthly payments.
So, what’s the difference?
Forbearance allows for missed payments to be due in a lump sum at the end of the forbearance period unless your lender agrees to structure a repayment plan.
Deferment allows borrowers to repay the money over time or add it to the end of their loan period.
Forbearance and deferment aren’t the only options. Some lenders are doing loan modifications, too.
Nothing is free. Temporarily hitting the pause button on your mortgage and not having to make the payment:
– DOES NOT necessarily pause the interest that is accruing,
– DOES mean that you’re going to have to make that principal and interest payment at a later date.