Test Your Knowledge of COVID-19 Mortgage Relief
In response to the pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. Included in the CARES Act are provisions that allow homeowners to delay mortgage payments through forbearance for federally owned or backed mortgage loans.
True or False?
Under the CARES Act, when a mortgage payment forbearance period ends, a lump-sum balloon payment is immediately required to catch up on missed payments.
Fact vs. Fiction
We understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. We created this series as a way to present and debunk some of the most common financial myths.
Fiction: It’s best to consolidate all of my student loans into one.
Fact: You may lose certain benefits from a federal loan if you consolidate it with a private loan. For example, all federal loans were suspended under the CARES Act, whereas private lenders were not required to do the same. In addition, when you consolidate, the new interest rate will be a weighted average of your current rates, rounded up to the nearest 1/8 of 1 percent. So, you can expect to pay a higher interest rate than the average of your current rates.
Last Updated: 07/28/2020