What does curtailment mean on a mortgage statement?

If you have a mortgage on your home and it’s not paid off, you’ll owe the lender some money. This is known as the principal balance. When the principal balance gets close to reaching its maximum, the lender will let you pay a smaller amount each month. This is known as a mortgage curtailment.

What do curtailment mean on a mortgage loan payment?

If you have a mortgage loan, the entirety of your monthly payment may be reduced if you have a loss of income. If you’re self-employed, you’re likely to have a loss of income if you have to stop working temporarily. If you’re a stay-at-home parent, you may experience a loss of income if you need to care for a family member.

What does curtailment mean on a mortgage payment?

If you're getting a mortgage through a bank or a federally insured mortgage loan program, the federal government has created a process to help curb losses during an economic downturn. If there are fewer qualified applicants for a loan during an economic downturn, the lender may require you to pay a portion, or "curtail," of your mortgage payment.

What does curtailment mean on a mortgage payment schedule?

If you have a mortgage, you’ll receive payments on your loan on a set schedule. So, when you miss a payment, that payment typically is added onto the end of your loan balance. However, when you allow your mortgage to exceed its allotted limit, your lender will impose some “curtailment” penalties. If you’re behind on your mortgage payments, but you can afford to pay the remainder of the loan balance, then your lender will allow you to

What is curtailment mean on a mortgage payment?

When you receive a mortgage payment from your lender, they deduct the amount of interest you owe based on the principal balance outstanding on your loan. If your mortgage balance is lower than the current interest rate, this is known as a “curtailment.” The smaller the balance, the less interest your lender will deduct from your mortgage payment. If you have a mortgage balance that is lower than the interest owed on your loan, you will receive a smaller payment that will cover only the principal