Understanding the Impact of Deferral (with Capitalization):

• This calculator assumes that during the deferral period, interest continues to accrue on your outstanding principal. At the end of the deferral, this accrued interest is capitalized (added to your principal balance).
• Your loan is then typically **re-amortized** over the remaining original loan term (i.e., `Original Remaining Term - Deferred Months`) using the new, higher principal balance.
• Original Monthly P&I: Your estimated payment before deferral.
• Interest Capitalized: The total interest that accrued during deferral and was added to your loan balance.
• New Principal Balance: Your loan balance after the capitalized interest is added.
• New Monthly P&I: Your new, likely higher, monthly payment required to pay off the increased loan balance over the new remaining term.
• Additional Total Interest Paid: An estimate of how much extra interest you might pay over the life of the loan due to the deferral and capitalization.

Important: Actual mortgage deferral or forbearance programs offered by lenders can have different terms. Some may offer a separate repayment plan for the deferred amount, a lump sum payment at the end of the loan, or a loan term extension without immediately increasing your regular payment by re-amortizing the capitalized interest over the exact prior remaining term. **Always confirm the specific terms and consequences of any deferral or forbearance agreement directly with your lender.** This tool is for informational purposes only and does not constitute financial advice.