Should you refinance now or do loan modification : Bad Credit Advisor

Should you refinance now or do loan modification

That is a serious question if should you refinance now or do something else. I would recommend to check with your lender for home loan modification scenario. No I am not talking about that mortgage modification - done by homeowners in financial trouble. The one I am talking about is the loan modification for borrowers in good standing to get a lower rate or even change a loan program. So before your refinance your home

consider the following hard facts, which can be quite applicable to you. All you have to do is ask a banker.

- Chase may convert a 15 year mortgage to a 30 year for just $395, and even let you keep your interest rate or decrease it to the current low for as little as .5% of your loan
- Alliant Credit Union offers a loan modification for adjustable rate mortgage loans only, for a fee of .5% it will bring your interest rate to the current, which is today 4.25% for 5 year ARM

So should you refinance your home now or do a loan modification as described above or something similar, depends on what is more expensive - to pay .5% fee to modify a mortgage or full cost of refinancing. Check what are those costs in your state, county, etc., and then talk to your lender of other possibilities and compare. See also Should I refinance my mortgage.

Sat Dec 20, 2008 06:12PM by Tony | More in Mortgage | Comments (1)

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