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Loan modification vs. refinance Key terms. Loan refinance. A mortgage refinance involves swapping your current loan with a new one, typically with a different rate, term or both.
“You can refinance after a loan modification, and the guidelines vary across the different loan types,” says Hackett. “In some instances, a lender may look for 12 months of on-time payments ...
Their existing loans may have carried higher interest rates, … Continue reading → The post Loan Modification vs. Refinance appeared first on SmartAsset Blog.
2. Loan modification. A loan modification permanently changes the interest rate, term or both on your mortgage. This option is best for borrowers who know they won’t be able to afford their ...
Loan modification is the systematic alteration of mortgage loan agreements that help those having problems making the payments by reducing interest rates, monthly payments or principal balances. Lending institutions could make one or more of these changes to relieve financial pressure on borrowers to prevent the condition of foreclosure.
A loan modification changes the rate or term (or both) of the existing mortgage loan. A mortgage refinance changes the rate or term (or both) through a new mortgage loan.