Mortgage deferrals are not gifts nor grants. They come come with a cost, an increase to future payments, an impact on future financing availability and a wider implication to your credit. It is fantastic that this option is available, however, home owners should not consider mortgage deferment as their first line of support.
Please note that interest will accrue on the deferred amount for the duration of the period. Home owners should also be aware that mortgage deferment may result in an increase to future monthly payments. The increased mortgage payment will differ due to interest rate, size of mortgage and the deferral duration. The home owner’s increased monthly payment could make it more difficult to become approved for future financing too.
A mortgage deferral is different from a default and should not have a negative impact on credit, however, taking a deferment may be “misunderstood” by your lender that you cannot afford to pay your bills. This could make it more difficult to be approved for future mortgage scenarios.
Home owners may want to think twice before considering a mortgage deferral. It is not without implications. Please do not hesitate to contact me here if you have any questions. I am also very happy to introduce you to a trusted mortgage specialist.
Thank you for reading this mortgage deferral blog post. I appreciate your time very much. Please do not hesitate to leave any comments below. I would love to hear from you. Are there any topics that you hope to see in a in a future blog? Also, please do not hesitate to contact me privately with any questions. I am always very happy to help you.