Deferment
Lending & MortgagesA temporary postponement of loan payments granted by a lender, often without accruing interest on subsidized loans.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding deferment 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 deferment impacts your specific situation.