Top Question:

What is a deferral?

Best Answer:

Depending on the type of loan you have, Deferrals or “Loan Extensions” take either the past due payments on your loan, the next payments due for a particular period, or a combination of the two and move them to the end of your loan term, either by extending your loan term for the number of deferred payments or by lumping them into one balloon payment due when your loan matures. Interest will continue to accrue on your loan; however, no additional interest will be charged for the deferred payments.

For example, if you enter into a 90-day deferral arrangement, the 90-day deferral would take your next three payments due or your last three past due payments and move them to the end of your loan. You would resume making your regular payment the following month. No additional fees will be charged. Your loan will either continue for three months beyond the original loan term, or you will owe those three payments in one balloon payment at the end of your loan term.

In the case of a credit card, a deferral means your minimum monthly payment will not be due for a certain amount of time, even though interest will continue to accrue based on your balance. No late fees will be assessed during the deferral period; however, if you continue to use your card during the deferral period without making payments and your outstanding balance increases, your minimum payment may increase as well. Please note: Payment assistance and loan relief options will vary depending on your loan type and financial situation. Arvest Bank wants to assist you whenever possible. Contact us at the earliest indication of a potential problem with your payment: