Freedom Mortgage's Payment Deferral Program

Freedom Mortgage does offer a payment deferral option, but it is not a skip-a-payment program in the traditional sense. Instead, Freedom allows borrowers to defer one or more monthly payments by moving them to the end of the loan term. The deferred payments are added to your loan balance, so you are not erasing the payment—you are postponing it and paying interest on it later.

This program is available to borrowers who are current on their mortgage or facing a temporary hardship. Freedom typically requires you to contact them directly to discuss your situation and determine whether deferral is an option for your specific loan type and circumstances.

The key difference between deferral and skipping is that skipping usually means the payment disappears entirely (which Freedom does not offer), while deferral means the payment moves to a later date and increases your total loan cost. You will owe more in the long run because interest continues to accrue on the deferred amount.

Key Takeaways

  • Freedom Mortgage offers payment deferral, which postpones your payment to the end of your loan term rather than erasing it.
  • Deferred payments are added to your loan balance, so you will pay interest on the amount you defer.
  • You must contact Freedom directly to request deferral and discuss whether you meet their requirements.
  • Deferral is typically available to borrowers who are current or facing a documented temporary hardship.
  • The total cost of your loan increases when you defer payments because interest accrues on the deferred amount.

How Freedom's Deferral Works in Practice

When you defer a payment through Freedom Mortgage, the lender adds that payment amount to the end of your loan. If you normally have 360 payments remaining on a 30-year mortgage, deferring one payment means you will make 361 payments instead. The deferred payment sits at the very end of the loan term.

Interest continues to accrue on your loan balance during the deferral period. This means the deferred payment will cost you more than it would have if you had paid it on the original due date. For example, if you defer a $1,500 payment and your interest rate is 6%, you will pay additional interest on that $1,500 for the remaining life of the loan.

Freedom does not charge a separate deferral fee, but the increased interest cost is built into the extended loan term. You should ask Freedom's representative to show you the exact impact on your final payment and total interest paid before you agree to defer.

Who Can Request Deferral from Freedom Mortgage

Freedom Mortgage considers deferral requests from borrowers in different situations. If you are current on your payments, you may be able to request deferral if you can show that a temporary financial hardship is coming—such as a job transition, medical expense, or seasonal income dip. If you are already behind on payments, Freedom may offer deferral as part of a loss mitigation option, though this is less common.

The lender will ask you to document the reason for your request. This might include recent pay stubs, a letter from your employer, medical bills, or other proof that your hardship is real and temporary. Freedom's underwriting team will review your loan history and current financial situation to decide whether deferral is appropriate.

Borrowers with government-backed loans (FHA, VA, USDA) may have different deferral options than those with conventional mortgages. Ask Freedom which type of loan you have before you call, because the rules differ.

How to Request Deferral from Freedom Mortgage

Contact Freedom Mortgage's customer service line directly. You can find the phone number on your mortgage statement or on Freedom's website. Have your loan number ready when you call, along with a brief explanation of why you need to defer a payment.

Freedom will transfer you to a loan specialist or loss mitigation team member who can discuss your options. Be prepared to provide recent pay stubs, proof of income, and documentation of your hardship if you are asking for deferral due to financial difficulty. If you are simply requesting deferral for convenience, the process may be faster.

Ask the representative to explain the exact terms in writing before you agree. Specifically, ask how many payments you can defer, what your new loan term will be, and what the total interest cost will be compared to your current loan. Request that this information be sent to you in writing so you have a record.

Deferral vs. Forbearance vs. Loan Modification

Freedom Mortgage may offer other options alongside or instead of deferral. Forbearance temporarily reduces or pauses your payment for a set period (usually three to six months), but you must repay the missed amount in a lump sum or through a repayment plan once forbearance ends. Loan modification changes the terms of your loan permanently—such as extending the term, lowering the interest rate, or adding missed payments to the balance—and requires formal approval.

Deferral is simpler than modification because it does not change your interest rate or monthly payment amount. However, it costs more in the long run than forbearance because you are extending the loan term rather than catching up later. If you are facing a long-term hardship, modification may be a better choice. If you need a short-term pause, forbearance might work better.

Ask Freedom to explain all three options and show you the cost of each before you decide. Some borrowers are only offered one option depending on their loan type and situation, but it is worth asking what is available.

What Happens If You Cannot Afford to Defer

If deferral does not solve your problem—because you cannot afford even the deferred payment later, or because you need relief now rather than postponement—tell Freedom immediately. Do not ignore the payment or wait for a late notice. The sooner you contact the lender, the more options you have.

Freedom may be able to offer forbearance (a temporary pause) instead of deferral, or a loan modification that lowers your monthly payment permanently. Some borrowers benefit from a combination: forbearance now to get through the immediate crisis, followed by modification to make the loan affordable long-term.

If Freedom cannot help, you can contact a HUD-approved housing counselor for free advice. These counselors work with borrowers and lenders to find solutions and can sometimes negotiate on your behalf. You can find a counselor through HUD's website or by calling 1-800-569-4287.

The Real Cost of Deferring a Payment

Deferring a payment sounds like relief, but the math matters. If you defer a $1,500 payment on a mortgage with a 6% interest rate and 25 years remaining, you will pay roughly an extra $2,250 in interest over the life of the loan (because interest accrues on that $1,500 for the full remaining term). That $1,500 payment actually costs you $3,750 by the time the loan is paid off.

This calculation varies based on your interest rate, remaining loan term, and how many payments you defer. A lower interest rate means lower additional cost; a shorter remaining term means lower additional cost. But in every case, deferring costs more than paying on time.

Before you defer, ask yourself whether you will actually be in a better financial position when that deferred payment comes due at the end of the loan. If the answer is no, deferral is just postponing a problem, not solving it. In that case, explore forbearance or modification instead.

Frequently Asked Questions

Can I defer multiple payments at once with Freedom Mortgage?

Freedom may allow you to defer more than one payment, but this depends on your loan type and situation. Most lenders limit deferral to one to three payments per year. Contact Freedom to ask how many payments you can defer and whether they must be consecutive or can be spread throughout the year.

Will deferring a payment hurt my credit score?

Deferral itself does not appear on your credit report as a negative mark if you set it up before you miss a payment. However, if you miss a payment and then request deferral after the fact, the missed payment will be reported and will damage your score. Request deferral before the payment is due to avoid this.

What if Freedom denies my deferral request?

If Freedom denies deferral, ask why and what other options are available. You may be offered forbearance, modification, or a repayment plan instead. If you disagree with the denial, you can request a review or contact a HUD-approved housing counselor to discuss your situation.

Can I defer a payment if I am already behind on my mortgage?

It depends on how far behind you are. If you are one or two payments behind, Freedom may offer deferral as part of a catch-up plan. If you are three or more payments behind, the lender will likely require a loan modification or forbearance agreement instead. Call Freedom to discuss your specific situation.

Do I have to pay the deferred amount all at once at the end of the loan?

No. The deferred payment is added to your loan balance and spread across your remaining payments. Your monthly payment amount stays the same, but you will make one additional payment at the very end of the loan term (or the deferred amount will be included in your final payment, depending on how Freedom structures it).