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 modification 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 mortgage refinancing you could find yourself having to pay closing costs and could require an appraisal of your home being done.
One benefit of mortgage refinancing is that the timeframe is a lot less then loan modification. It can take approximately 30 to 60 days for a mortgage refinancing to be done, but it could take between 30 to 180 days for a loan 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 loan modification doesn’t look at what your credit score actually is. This is the main cause of many being turned down for mortgage refinancing which leads them to applying for loan modification.
It seems that loan modification is becoming the more popular option for many homeowners as mortgage refinancing has many downsides compared to loan modification.
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 mortgage refinancing because of their credit score many more are turning towards loan 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.
