Default
Lending & MortgagesFailure to repay a loan according to its terms, which can lead to collection actions and credit damage.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding default helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how default impacts your specific situation.