What is the difference between a loan modification and refinancing is normal?
March 20, 2013 in mortgage by jedwan
They sound the same to me. I’m a little confused. There is also a second mortgage short and refinancement.Quelqu a Can these definitions for me please and please advise which one would be better?
It is easy to explain the definitions of the terms; but, to advise you on which one is best for you would take some financial anaylsis.
Loan Modification and Refinancing can sound the same but they are a little different.
Loan Modification: A simple modification to the terms of your original loan or note between you and your current mortgage holder. Example: Modification in interest rate to help you save your home from going into foreclosure.
Refinancing: Remortgaging your loan balance to an entire new loan with your current mortgage holder or a totally different one. Example: Refinancing from a 30 year mortgage to a 15 or refinancing fron an adjustable rate mortgage to a fixed rate.
Second Mortgage: Just that, it is a second position mortgage on your home in addition to the primary or first mortgage.
Short Refinance: Never heard of it.
As I mentioned to advise you on which would be better is impossible without knowing more about your financial situation. I suggest you meet with a loan officer at your bank or credit union and ask them to advise you based upon your current financila situation.
sfmca5 is correct: these are 4 very different things.
Do some research or talk to your lender. It is impossible for any of us to advise you since we don’t know your specific financial situation.