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What’s the difference between home loan modification and mortgage refinancing?

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home loan modification vs mortgage refinancing, are they the same thing?

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    A mod will take your existing loan and make changes to it it can lower your interest rate and your payment or just lower your payment the bank will take your financial information from you and then they will determine how much you can afford to pay a month then the mortgage company will make a decision based on the information they have got from you if they will do the mod but with the new obama plan they will give you a mod for 3 months to see if you can make the new payments is you can then you get the mod if you can’t then you don’t and the obama plan will give you a fixed interest rate instead of an adjustable one
    A refinance will give you a completely new loan so you could get a lower interest rate and a new payment but if you are behind in your current mortgage most banks will not touch your loan and you will have to try and get a modification

    kat - Sep 23, 2012 | Reply


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