What type of payment is insufficient to cover the scheduled monthly payment on a mortgage loan?

A partial payment refers to an amount that is less than the entire scheduled monthly payment on a mortgage loan. When a borrower makes a partial payment, they are not fulfilling the full requirement of the monthly payment, which typically includes both principal and interest components. As a result, the partial payment is insufficient to cover the total obligation that the borrower has to the lender for that month.

In contrast, minimum payments often refer to the smallest amount a borrower can pay without defaulting, which may still be based on the full payment terms, while deferred payments involve postponing payments for a period but still requiring them in the future. Reduced rate payments suggest a temporary adjustment in the interest rate, potentially lowering the payment amount, but they are typically structured to meet the required payment schedule. Therefore, a partial payment clearly does not meet the requirements of the mortgage payment schedule.