South Porte Bank continues to monitor the pandemic and its impact on our customers. As a part of our ongoing effort to minimize its impact, we are offering the following payment relief options to our customers that qualify:
Option 1: 90 Day Principal Deferral
- Requires interest only payments for 90 days
Option 2: 90 Day Payment Deferral
- Requires no payments for 90 days
Note that interest will continue to accrue during the payment deferral time period at the rate stated in the loan documents. The current maturity date that is stated in the loan documents will not be extended. By deferring all or just the principal portion of the monthly payment, you will be impacting the final payment due at the maturity date. Please see below for an example
- Example: You took out a $20,000 loan, with an APR of 5.25%, with 5 years of monthly principal and interest payments of $379.72. You have made 2 years of payments (24 monthly payments) and reduced the loan balance to $12,622.26.
- Option 1: You decide to pay just the interest portion of the next 3 payments, and defer the principal portion. You will pay $55.22 for the next 3 months, then resume paying $379.72 in month 4. When the final payment is due, you will have to pay $1,508.99 on the maturity date
- Option 2: You decide to defer 3 full principal and interest payments. When payments resume, you will continue to make your regular $379.72 monthly payment. When the final payment is due, however, you will have to pay $1,699.48 on the maturity date.
In the event that your loan includes the escrow of real estate taxes and/or insurance, that portion will also be deferred. That deferment will likely result in a significant increase in your escrow payment for the following year to offset the shortfall the deferment will create.
All payments, including principal, interest, and any other charges or fees, will be due as otherwise scheduled, but not later than at the maturity date stated in your loan documents. All other terms and conditions of the loan documents remain in effect except as modified by this request.
To take advantage of either option, please contact your lender at 618-998-0098 (Marion) or 309-458-6241 (Plymouth).