Mortgage Terms
Published on
May 14, 2025

Forbearance vs. Deferment: Choosing Between Mortgage Relief Options

min read
Nathan Knottingham
Forbearance pauses mortgage payments temporarily, with repayment soon after. Deferment delays payments to loan end. Choose wisely.

Let’s be honest, life throws curveballs. A job loss, medical emergency, or unexpected bill can put serious pressure on your monthly budget, especially when a mortgage is involved. If you're struggling to make payments, understanding your options is crucial. And that’s where two relief paths often come into play: forbearance and deferment.

They may sound similar, but they function very differently, and choosing the wrong one could cost you in the long run.

This guide will cut through the jargon, explain each option clearly, and help you make the smartest move for your financial future.

Forbearance pauses payments now, but you’ll need to repay them soon. Deferment moves skipped payments to the end of your loan. Choose based on when you can realistically repay, and get everything in writing.

Key Takeaways:

  • Forbearance pauses your mortgage payments temporarily, but repayment comes due later.
  • Deferment delays payments by moving them to the end of your loan term.
  • Each option has pros and cons depending on your financial goals and loan terms.
  • Relief options vary by lender; know your rights and ask the right questions.
  • Always confirm any agreement in writing to protect yourself.

What Is Forbearance?

Forbearance is a short-term pause or reduction in your monthly mortgage payments, usually granted during financial hardship.

How It Works:

  • You don’t have to make full payments for a limited time.
  • You must repay the skipped amounts later, often in a lump sum or via a repayment plan.
  • Forbearance doesn't erase your debt, it only delays it.

Pro Tip: Always ask your lender how repayment will work before you agree. Some require a full lump sum immediately after the forbearance period ends.

Example: If your monthly mortgage is $1,500 and you enter a 3-month forbearance, that’s $4,500 in deferred payments. Unless you have a clear repayment plan, this could be a financial shock.

What Is Deferment?

Deferment allows you to push missed payments to the end of your loan term, instead of paying them right after the relief period.

How It Works:

  • Payments are typically added as a non-interest-bearing balance or balloon payment at the end of your loan.
  • Your monthly payment resumes as normal once the deferment period ends.

Real Talk: Deferment is often less financially stressful than forbearance, if your lender offers it.

Heads Up: Not all lenders offer true deferment. Sometimes they’ll call it a deferment but require a balloon payment sooner than expected. Read the fine print.

Side-by-Side Comparison


FeatureForbearanceDeferment
Payments PausedYesYes
Repayment TimingShort-term (lump sum or plan)Long-term (at the end of the loan)
Interest AccrualYes, unless waivedTypically yes
Credit ImpactNeutral if agreed upon and reportedNeutral if agreed upon and reported
Available To WhomVaries by lender and hardship typeVaries, often more selective

Which One Should You Choose?

This depends on:

  • Your timeline for financial recovery
  • Lender flexibility
    Loan type
    (e.g., conventional, FHA, USDA; rules differ)
  • Whether you can handle a lump sum later.

Pro Tip: Always confirm your relief option in writing. Verbal promises won’t hold up if a loan servicer changes hands.

What Lenders Say?

According to Freddie Mac and Fannie Mae guidance:

  • Forbearance is usually the first step for hardship relief.
  • Deferment is sometimes offered afterward, depending on your circumstances.

Check with your lender’s website for their specific relief programs. If you're unsure, call their mortgage relief department and ask:

  • What are the repayment terms?
  • Will interest accrue?
  • Will this affect my credit?
  • Can I refinance after this?

Conclusion: Secure Relief with Confidence

Navigating mortgage relief isn’t easy, but you don’t have to go it alone. Whether you lean toward deferment or forbearance, the right support and guidance can protect your home and future.

realpha is a commission-free home buying platform that helps you make smarter decisions during uncertain times. And through its partnership with Be My Neighbor, you’ll have access to licensed mortgage professionals who can walk you through your relief options clearly and honestly.

Be My Neighbor | NMLS #1743790

FAQs

What’s the main difference between forbearance and deferment?

Forbearance is a temporary pause in payments, while deferment pushes payments to the end of the loan.

Does forbearance hurt your credit?

It shouldn't if it's properly reported and part of a formal agreement.

Can I sell my home while in forbearance or deferment?

Yes, but any missed payments will be settled during closing.

Do I have to pay interest during deferment?

Usually yes, unless your lender specifies otherwise.

Can I refinance after forbearance?

Often yes, but you may need to resume payments for a few months first.

Disclosure:

This blog is for informational purposes only and does not constitute financial advice. All mortgage relief options vary by lender and loan type. Be sure to consult your servicer directly. Licensing: Be My Neighbor is a licensed mortgage lender | NMLS #1743790. realpha operates as a technology platform and does not provide mortgage lending services. Any mortgage-related services offered through Be My Neighbor are subject to standard underwriting criteria and disclosures.

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