Loan Forgiveness
Lending & MortgagesCancellation of remaining loan balance after meeting specific criteria, such as years of qualifying payments or public service.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding loan forgiveness 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 loan forgiveness impacts your specific situation.