Can I Defer My Home Equity Loan?

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A home equity loan cannot be deferred like a student loan because it is a mortgage. Work with a lender to keep a loan alive and valid with help from a financial adviser in this free video on home equity and personal finance.

Part of the Video Series: Home Equity & Foreclosure
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Video Transcript

Hi, my name is Matt McKillen and I'm with Innovative Financial Group. The question posed to me today is can I defer my home equity loan? Generally a home equity loan because it's secure to the property, cannot be deferred the same way for example a student loan can be deferred. And a student loan can be deferred if you've just recently gotten out of school and graduated, it's an economic hardship for you to make payments because you're just starting out in the job market. Those types of loans can be deferred for up to years before the repayment schedule starts. On a home equity loan, generally you cannot defer the payments because it is a mortgage just like your first mortgage. Now there are ways to work with your lender, sometimes they can give you a forbearance if let's say you are behind a few months and they take those late payments and put them on the back end of the loan. There's generally a variety of different ways they can work with a homeowner to keep their loan alive and valid, but as a whole you cannot defer a home equity loan 'cause it is an interest bearing loan like your first mortgage, and those payments must be made on a monthly basis. Again, my name is Matt McKillen, I'm with Innovative Financial Group.

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