Loan Modifications Vs Mortgage Refinancing – Which Offers a True Advantage?
Many people can’t seem to figure out which is better, loan modification vs mortgage refinancing making it difficult to decide which they should choose. Both of these options can help someone with an unaffordable mortgage but both seem to take some time to get into as there is lengthy application processes involved with both.
With loan modifications you won’t find yourself having to pay any cost for doing it or have to go through an appraisal of your home, but with home refinancing you could find yourself having to pay closing costs and could require an appraisal of your home being done.
One benefit of refinancing is that the time frame is a lot less then modifying your loan. It can take approximately 30 to 60 days for a refinancing to be done, but it could take between 30 to 180 days for a modification which is causing many more people to turn to mortgage refinancing instead.
Most don’t realize that with mortgage refinancing you need to have a somewhat better credit score then you’d need with loan modification as it doesn’t look at what your credit score actually is. This is the main cause of many being turned down for home refinancing which leads them to applying for loan modifications.
It seems that modifying loans is becoming the more popular option for many homeowners as refinancing has many downsides compared home modifications.
For those homeowners considering either of these options you should take the time to go through the many pieces of information that are made available to really determine which option is right for you. With most people being turned down for refinancing because of their credit score many more are turning towards modifications instead.
If you’ve considered doing either a mortgage refinance or a loan modification you should make sure to talk with your mortgage broker to find out which option is right for you.
There are many differences between the two options so you need to look at loan modification vs mortgage refinancing to really see which option is right for you. There are many pros and cons for both options which make it hard to decide which option is better for you, but when you sit down and determine what option is better you’ll easily see the differences right away. Make sure to ask tons of questions and you could be on your way to finding the right refinancing option for your home quickly.