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Forbearance

A temporary agreement with your lender to reduce or pause mortgage payments during a period of financial hardship. Forbearance does not erase what you owe — you will need to repay the missed amounts later through a repayment plan, loan modification, or lump sum. Contact your lender as early as possible if you are struggling, as forbearance is easier to arrange before you fall behind on payments.

Why It Matters

Understanding Forbearance is a key part of choosing the right mortgage. The type of loan you select affects your monthly payment, how much interest you pay over the life of the loan, and how much flexibility you have if your financial situation changes.

When comparing loan options, pay attention to how forbearance fits into the bigger picture of your borrowing costs. A knowledgeable loan officer or mortgage broker can help you evaluate whether this option aligns with your financial goals and timeline.

Related Terms

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Tools That Use This Concept

MMortgage Payment CalculatorMAmortization ScheduleMAffordability Calculator
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