Do I Pay More in Interest if I Delay My Repayment Date?
Over the life of a 30-year mortgage, financial ups and downs occur. If you have trouble making your repayment, lenders allow the delaying of one payment or two. However, lenders want to know what’s happening that’s causing the delay.
Before requesting a delay, it’s worth knowing how it impacts the interest charge of your mortgage.
A repayment delay means that the lender allows you to send it at another date. It’s up to the lender to decide your arrangement based on your repayment history, length of the relationship, and other factors. The interest clock never stops ticking. Even though you’re sending your current repayment in a month, the interest continues to accrue.
Those who delay their repayment will pay more in interest. To keep the interest from ballooning your total mortgage, contact the lender. Find out how much interest accrued during the delay. Mailing that amount and your repayment helps keep extra interest rate charges low. Otherwise, the lender capitalises the interest. This means that it rolls into the outstanding mortgage amount, and you pay interest on interest.
You may be in need of a different solution, such as a refinance home loan option.
Delay My Repayment Date Conclusion
After you procure a mortgage, you have the opportunity to delay my repayment date. Keep in mind that the interest continues to accrue as long as there’s an outstanding balance. Since the interest rate clock continues to tick, a delay incurs more fees. If you’re having trouble paying off your mortgage, contact Mortgage House. Our loan specialists will explore alternative solutions with you.