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What is the difference between refinancing and loan modification?

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11th Nov 2009 by Burt Carlson

Refinancing is paying off your current lender by borrowing from that lender or finding another lender. A loan modification is the changing of the original terms of the loan to reduce the payment to a more affordable level. In today's world refinancing is more difficult because the qualifying standards are more strict and many homeowners owe more than their home is worth. On the other hand doing a loan modification can save homeowners 25-35% of their current payment yet they can still be upside down in their home. Check with your lender to see if you might qualify for a loan modification.

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28th Oct 2009 by Gary

Refinancing is simply taking out a new loan, from which you would pay off the old loan on the home. Loan modification involves changing the terms of the existing loan in order to help someone be able to keep the home while affording to pay the mortgage.

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27th Oct 2009 In Finance 2 Answers | 2583 Views
Subjects: loan modification, refinancing,

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