Just because you can waive your mortgage payment, should you?

WWNY Just because you can waive your mortgage payment, should you?

WATERTOWN, N.Y. (WWNY) - Relief is on the way for some in the state hurt financially by COVID-19.

In an executive order, Governor Andrew Cuomo is giving borrowers the option to waive mortgage payments for 90 days.

But, Carthage Savings President and Chief Executive Officer Tom Piche says, if you can make your payment, you should.

"Typically, what will happen is the banks will take the interest that you would be normally paying and it's being added to principle. So, in essence, you're paying interest upon interest. You're going to end up paying it back some time and it's going to be more than you would have normally," he said.

As part of the order, getting a mortgage payment waived won't hurt someone's credit score.

According to Piche, not paying at all will.

He says people should contact their bank first if they don't think they can pay.

"If people might go delinquent on their payment, they should absolutely be contacting their bank and getting an extension in place," said Piche.

At Watertown Savings Bank, President and CEO Mark Lavarnway says his institution is also helping people looking to defer their mortgage payments. But, they will have to attest to being hurt financially by the COVID-19 pandemic.

"The bar for the proof of the impact statement is pretty low. It's an on your faith, good faith statement that says, 'Here's what happened and here's why I need the relief,'" said Lavarnway.

Cuomo stated in last week’s address the state will reassess the COVID-19 situation to see if the 90-day window needs to be extended.

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