Homeowners with mortgages from Fannie Mae and Freddie Mac now have another option to defer payments during COVID-19
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- The Federal Housing Finance Agency (FHFA) has introduced a new deferral repayment option for people with mortgages backed by Fannie Mae and Freddie Mac.
- If you pause mortgage payments due to the coronavirus, you can request to repay in one lump sum at the end of your loan term.
- You’ll make one payment when your loan term ends, or when you sell or refinance the home.
- This repayment option doesn’t increase your monthly bill or result in more owed interest, and it gives you time to save money for a lump sum payment.
- Servicers must provide this deferral repayment option for people with Fannie Mae and Freddie Mac loans beginning July 1, 2020.
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You may have heard that you can request forbearance for up to a year if you have a government-backed mortgage and have been impacted by the coronavirus. In fact, maybe you’ve already enrolled with your servicer.
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[Source: Business Insider]