1 thought on “Coronavirus Mortgage Market Update – Forbearance – 3/20/20

  1. The one thing nobody talks about is what happens to the mortgage interest that is due each month?  My understanding is that since you're no longer making mortgage payments, the mortgage interest that is due will be added to your principal.  If this is the case, then at the end of the forbearance, your principal will be larger than it was at the beginning.  If you're at the beginning part of paying off your mortgage, that mortgage interest can be quite large, and you might be lengthening your mortgage substantially. I doubt any of these banks are just freezing the principal amount due and allowing you to resume the mortgage some months later.

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