AP Passion at a String Blog

Refinance Home Mortgage Plans Shifting to Loan Modifications

The new hot term in mortgage refinancing is “loan modification”, and many homeowners are flocking to apply, particularly with the opening of the new government home mortgage modification program.  A loan modification is really designed for those that are in risk of missing mortgage payments or possibly in foreclosure risk already.

If you are current on payments and have little or no risk of missing your home loan payments, then a loan modification is most likely not for you.  What many don’t realize under the new government modification program is that mortgage rates will start out low, but then gradually increase over a period of five years.  If you have no other option, then this is a godsend for you, but if you are in good financial shape and looking for a low fixed rate refinance home mortgage, then a modification will not be the best route for you.