Mortgage relief options: Refinancing versus loan modification

Get answers about property insurance.

The Federal Deposit Insurance Corporation (FDIC) is actually known for wanting homeowners to have the opportunity to refinance their home for lower mortgage payments. Refinancing in itself has been shown to reduce the average monthly mortgage payment by hundreds of dollars in most cases. Loan modifications are a bit different than refinancing loans, as the modification process focuses on adjusting your current mortgage payment as opposed to applying for an entirely new mortgage rate and waiting for the approval process.

 

Key Takeaways:

 

    • Depending on your mortgage’s interest-rate, refinancing can help reduce monthly mortgage payments by hundreds.

 

    • Two of the most common mortgage relief options are a refinancing loan or a loan modification. A loan modification differs from a refinancing loan in the fact that it modifies your current rate.

 

    • It is important to realize that the FDIC advocates for homeowners who are struggling to be able to be approved for a loan modification.

 

 

“Mortgage forbearance allows borrowers to pause payments and make them up later”

Get answers about property insurance.

Read more: https://www.bankrate.com/mortgages/loan-modification-or-refinance-whats-better-for-borrowers/

Image by Alexander Stein from Pixabay

Comments are closed.