U.S. Mortgage Index

Deferment

Definition

Deferment is a temporary arrangement to pause or reduce required mortgage payments, if the servicer offers and agrees to it. Missed amounts may be added to the loan later, depending on the agreement.

In plain English

Deferment is a servicing arrangement, not a right that every borrower automatically has. When it is granted, required payments may stop or shrink for a time. It is not the same as delinquency, which is a failure to pay as agreed. It is also not the same as a repayment plan that spreads past-due amounts over future payments.

Technical definition

Consumer glossaries describe deferment as a temporary pause or reduction in payments. Practices vary by servicer and investor. This page does not describe a legal entitlement.

Why it matters

Households in hardship need the word used precisely so it is not treated as forgiveness or as a universal program.

Sources reviewed

Important note

Not every servicer offers the same relief options. This page is not foreclosure or legal advice.