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January 19, 2023
A mortgage default occurs when a borrower fails to make monthly payments on a house loan's principal or interest. However, credit card and student loan defaults are also possible. When a borrower consistently misses payments or stops making them altogether, there can be substantial long-term and short-term consequences. A mortgage default can result in a borrower losing their home and harming their credit score. Defaulting might also raise the borrower's interest rate on other loans and make it difficult to qualify for a future loan in the long run.
Related Topics
When Is the First Mortgage Payment Due?
What Does Foreclosure Mean?
What Is a HELOC Loan?
Loan Default
Financial Considerations (For First-Time Home Buyers)
Mortgage Loan Types
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual