Loan Modification vs. Refinancing
What are the differences between Loan Modification and Refinancing?
To answer many of the questions about the differences between Loan Mod and Refinancing, we put together a quick quide to help you navigate to the answers. Many homeowners get tied up and twisted around in the loan termonology as they are looking for solutions to their current mortgage payment situations. First we will start with some quick definitions:
- A Loan Modification is is a permanent change to one or more of the terms of an existing mortgage loan agreed upon by the borrower (you)Â and lender (bank). This change can be to many different variables of the loan: Interest Rate, Loan Term, Loan Balance, etc. Talk with someone now!
- A Refinancing is the process of taking out a new loan with different/better terms than an existing loan. The new loan will more than likely payoff the existing loan; which will then be terminated. The borrower will now have a new loan with new terms and conditions. The new loan can be originated with a different bank and is completely independent from the existing loan.
Ok, now that we have those out of the way, what does that really mean? Well, if you modify you loan, you are still in the existing loan contract with the existing bank. Alternatively, if you refinance, you take out a new loan and that can be with a different bank.
Related Blogs
- Related Blogs on home refinancing
- » America’s Talking Question: 12/18 The Live Desk Blog « FOXNews.com
- Reverse Mortgages and Home Equity Growth - The Facts | ReFinance …
- Refinance Rates to Save Money on Mortgage Loans
- Save Money With Refinancing Loans | Financial Information at ANEEZ
- Related Blogs on loan mod
- AAOA - American Apartment Owners Association » FDIC Loan Mod Plan …
- Related Blogs on loan modification
- Recent Trends in Loan Modifications
- Craigslist Loan Modifications | Loan Modification Home Loans
- HOW TO AVOID FORECLOSURE - Riverside | Loan Modification Home Loans
- Loan Modification Affiliate Program Pays $300
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
[...] Loan Modification vs Refinancing [...]