Mortgage Loan Modification Blog
Loan modification does not pay off your current mortgage, it will change the original terms of the loan. It does not replace the original loan with a new loan. Modification changes the terms of the loan to suit your current needs or situation. The most benefit of modification is the lowering of your monthly payment, a lower monthly payment can be a life saver especially if you have just suffered a loss of income or taken on new expenses.
Modifying your mortgage loan, will extend the duration of paying your loan off. If becoming debt free is what you are trying to achieve. Loan modification will greatly affect that goal. Modifying your loan can possibly prevent foreclosure .If the foreclosure process has already started A loan modification can’t stop the foreclosure. Negotiating a new loan modification agreement is not a quick fix. Also loan modification means that you will be paying more interest over time. If you don’t have a lower interest rate, you can end up paying more money in total. The terms of your loan will be extended, that means you will be paying more interest.