Current loan
Proposed modification
This is not a modification approval tool. It models principal and interest only and cannot determine eligibility, credit reporting, escrow, foreclosure, or program treatment.
| Scenario | Monthly P&I | Interest through horizon | Balance at horizon | Full-term interest | Full-term cash out | How to read it |
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Methodology notes
Current path
The calculator uses your current P&I payment if entered. Otherwise it calculates a payment from the unpaid principal balance, current rate, and remaining months.
Modified balance
Past-due arrears and fees are added to principal. The deferral amount is then removed from the amortizing balance and shown as a separate amount due later.
Cost comparison
Full-term cash out compares remaining current P&I plus modeled arrears against modified P&I plus the deferred amount. Escrow, taxes, insurance, and legal fees are excluded.
Results are estimates for educational purposes only and are not financial, legal, tax, credit, servicing, or foreclosure advice. Written servicer agreements, official notices, investor or agency rules, mortgage documents, and applicable law control. See full disclosure.
Important caveats
- Servicers and investors can use waterfall rules that decide whether a rate change, term extension, capitalization, deferral, partial claim, principal forgiveness, or other treatment is available.
- A lower P&I payment may not mean a lower total housing payment if escrow, taxes, homeowners insurance, mortgage insurance, HOA dues, or shortages change.
- Some modification terms require successful trial payments before the permanent agreement is issued. Keep proof of payment and written confirmation.
- Credit reporting during hardship, trial plans, and permanent modification depends on account status, program rules, applicable law, and official servicer records.
- Foreclosure protections and deadlines are legal and procedural issues. Do not rely on this calculator to decide whether a notice, deadline, or sale date is valid.
Mortgage loan modification FAQ
Should I include escrow in the payment?
No. Enter the principal and interest payment here, then separately review escrow, taxes, insurance, shortages, and fees in the servicer's written offer.
What if my trial payment is different?
Use the trial payment budget field to test affordability, but rely on the servicer's trial-plan amount and due dates. Ask whether trial payments are applied, suspended, or posted after completion.
Is deferred principal forgiven?
Usually it is not forgiven unless the written program says so. Deferred amounts may be due later and can affect payoff, sale proceeds, refinance, maturity, or transfer.