home loan modification vs mortgage refinancing, are they the same thing?
What’s the Difference Between Home Loan Modification and Mortgage Refinancing?
Refinancing Loan
How to refinance loans
home loan modification vs mortgage refinancing, are they the same thing?
No. home loan modification can mean lowering your overall debt to the bank/ mortgage holder. Refinancing doesn’t imply this at all.go to my blog for more info…http://home-loans-jd.blogspot.com/
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 meet the deprivation of to pay a month then the mortgage company will make a choice based on the information they have got from you if they will do the mod but with the new obama plot 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 plot will give you a fixed interest rate instead of an flexible 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
No, they are not the same thing.
Which one is best for you will very much depend on your personal circumstances, but do try and get quotes for both before building a choice.
If you are behind on your payments than loan mod is your option.
Home loan modification is modifying the existing terms and conditions of your current mortgage. Usually a fee is required upfront. It usually takes about 90 days. On mean this fee amounts to about 3000 dollars. Usually a modification is done only when you present a significant risk to the lender, such as upside down mortgage, loss of job, illness, or a drastic increase in rate or payment usually you are behind in your payments. No credit check is required.
Mortgage refinancing is selling your existing mortgage note to another lender by rising the loan amount to cover the costs associated with the refinance. Usually this ends up costing you more money than a mortgage modification about 3000 dollars for every 100000 dollars financed. You need excellent credit to refinance.