Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
All of F
Forbearance
A temporary postponement of * principal and * interest payments during which the borrower may only pay the interest on the loan. If the borrower chooses not to pay the interest, it will be capitalized (adding accumulated interest to the loan principal) at the end of the period.
Glossary For This Page
(In Alphabetical Order)
* Interest
The cost you pay to borrow money.
* Principal
Amount owed on the loan at any given time, not including the interest.
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