| There are a lot of different mortgage terms | | | | refinancing a loan, making it much easier to |
| being thrown around these days, with loan | | | | negotiate new loan terms. |
| modification and refinancing becoming two of the | | | | 3. There is a lot less paperwork involved when |
| most popular. If you are looking for a way to | | | | modifying your loan than a refinancing. Remember |
| slash your mortgage payments, you may be | | | | all of that paperwork you had to fill out when you |
| considering one of these two options. But wait! It's | | | | applied for your mortgage? Depending on the |
| important to know the differences between them | | | | lender, a loan modification may not even ask you |
| to avoid getting into another mortgage mess. | | | | for your pay stubs! |
| Loan Modification vs. Refinancing | | | | 4. Refinancing a mortgage these days is tough! It |
| It can be easy to confuse modifying your loan | | | | may sound crazy to think it's easier to get a loan |
| and a refinance, especially since both are designed | | | | modified than to get a whole new mortgage, but |
| to lower your current mortgage payment, but | | | | it is. Refinancing your current mortgage will require |
| there are some important differences to consider | | | | equity in your house; a stable income; and a very |
| before applying for either: | | | | good (if not great) credit rating. |
| 1. Refinancing a mortgage requires you to reapply | | | | If you are one of the millions of homeowners |
| for a new loan - a modification doesn't. Modifying | | | | right now looking for ways to lower their monthly |
| your current mortgage is simply a way to change | | | | mortgage payment due to financial stress, a loan |
| your current mortgage contract by asking for | | | | modification may be the better option. |
| either an extension of the loan terms; an interest | | | | You don't need to hire an expensive firm to do |
| rate reduction;to help you reach a payment | | | | your loan modification, on the contrary doing it |
| amount you can live with. Since most people | | | | yourself leads to better results and thousands of |
| needing to lower their payments these days do | | | | dollars saved. One such kit is 60 Minute loan |
| not qualify for a new loan, refinancing may not be | | | | modification. It is very simple to follow and has |
| an option. | | | | helped multiple people stay in their house and |
| 2. Since you already hold a mortgage, loan | | | | avoid foreclosure. |
| modification rules are a lot more lax than | | | | |
