Can I Skip a Mortgage Payment? What will it Cost in the Long Run?

Many of the products/services listed on this page are from our affiliate partners. We receive commissions if you purchase any of those items, but it does not influence how we review them or what ratings starS (or lack thereof) appear next to each product category in reviews like these ones! Learn more by reading Advertiser Disclosure prior to making your decision.

In life, you may come across some unexpected cost and you may choose to skip one or two mortgage monthly payments to save you from the situation. For this reason, most private mortgage agreements have a privilege clause for you to skip a mortgage payment. The question is: is it advisable? What cost implications does it have? Our article will show you everything you need to know when it comes to skipping a mortgage payment.

Impact of skipping a payment to the total amount of mortgage paid

Depending on your lender, you may be allowed to skip 1 to 4 monthly payments per year. This means you can skip paying the principal and the interest payment for that month. However, you will not only miss the chance to pay down your balance, but also the interest for the skipped month will be charged and summed with the mortgage balance amount.

Mathematically, skipping a mortgage payment will lead to interest capitalization; whereby your interest will be added to your loan balance. This will continually attract more and more interest until the final payment. Make sure you avoid having too much debt. These 10 tips on how to reduce mortgage debt will help you.

You should first consider the extra interest you will have to pay if you opt to skip one or more mortgage payments. Given the effects of skipping a mortgage payment, you take some time to consider the pros and cons and decide what’s best for you to do.

Can I repay my skipped mortgage payment(s)? 

Yes, you can decide to repay the skipped payment at any time within the mortgage term and no penalty is applicable in such a case. All the same, you will be required to pay the missed monthly payment and any additional interest charged on the interest portion of the skipped payment to reverse the impact it could have had on the total mortgage amount.

What do I need to qualify for skipping a mortgage payment?

If your mortgage terms and conditions have the ‘skip a payment’ clause, many lenders will have to confirm that:

  • Your mortgage is not in arrears.
  • The mortgage balance and the amount you wish to skip is less than the original mortgage amount.

In most cases, homeowners with a high ratio or 10-year long mortgage terms do not qualify for the skipped mortgage offer. When you’re comparing mortgage rates, one of the factors you need to look into is the terms of conditions of your mortgage. That’s why you should always consider getting a 3-year mortgage term or a 5-year mortgage term.

Should I skip a mortgage payment? Is it advisable?

In life, you may be faced with a financial crisis, which could be losing your job or any emergencies that bring in unexpected costs. In such a crisis, skipping your mortgage payment will be a short term solution to this challenge. However, you need to consider the extra amount you will pay in interest (on top of your current mortgage rates) over the life of the mortgage; particularly if you will be unable to pay the skipped amount.

Picture of Vik Palan

Vik Palan

Chief Editor -

We will be happy to hear your thoughts

Leave a reply

Leave Your Review

Would you mind taking just 1 minute to share your thoughts about your ISP/Mobile Carrier? Your insights can greatly assist others in making informed choices.