Loan Modifications vs. Refinancing
There are 2 reasons why you should modify your loan instead of pursuing a refinance:
cost and ability to qualify for a loan.
You can do your own loan modification! There is no need to pay fees of up to $2,000 or more to hire a lawyer to negotiate the modification on your behalf. The Obama plan provides many incentives for lenders to work with you. Watch this video to get started TODAY!
You will need excellent credit to qualify for a refinance in the current credit climate. If you’re in danger of falling behind on your mortgage, chances are you have less than spotless credit.
Loan Modification is the best option if you are in danger of falling behind on your payments, or if you could not afford to stay in your home with a new loan at conventional rates.
Refinancing may be a better option, if you have equity in your home and are looking for a lower interest rate. Refinancing is also the only way to cash out if you want to tap into your home’s equity.
