Question:

How to defer a mortgage payment?

Answer:

When talking about how to defer a mortgage payment let's make it clear that mortgage payments are usually deferred twice during the lifetime of a mortgage.

One is upon inception of the loan - people sometimes wish to postpone starting with their mortgage payments with a couple of months, or so. Some borrowers don't know that mortgage payments don't start right away and you will hardly need deferral.

For example, if you are closing on June 14, you are paying per diem interest for the remaining days of June and will owe a mortgage payment for July in August. Given the grace period of 15 days, you could make the first mortgage payment for July by the end of August without incurring a late report to the credit bureaus. Only late fees and interest will be charged.

Deferring a Mortgage Payment during the Mortgage Term

While the lender might have a positive policy regarding restructuring and deferring home loan payments, you have to find out on time, if you are seriously obstructed from coming up with your mortgage payments. If they are willing to defer your payments without reporting to a credit agency and without incurring unbearable late fees, you could take a chance with mortgage payments deferral.

However, if deferral will be reported and you are not certain that your financial situation will be resolved within several months, perhaps deferral is not your best shot and you might think of selling the house and refinancing.

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