Rules have changed for Loan Modifications. If you have a Baloon loan doing a loan modification and put that loan into a fixed term loan with no cost. Refinancing will cost money and lenders have made it difficult to qualify. You dont have to be behind on your mortgage to qualify for a loan modification. Interest only loans, variable rates and baloon mortgages are all considered Hardship Loans. The key is presenting your case to the lender and negotiating the terms of a new loan. I have succesfully negotiated loan modifications and the most recent I got approval for a 2% fixed rate for my client. I would be happy to discuss your situation and provide you with information and reasources to use. Its in your best interest to go after the loan modification and save the several thousand dollars a refinance will cost you.

Most lenders are not participating in Loan Mod programs because of the risk and exposure it puts them in. If you have a shred of equity, then I would suggest the refi. A loan mod would only be an option if you were severely under in your equity and falling behind on payments.

If you have any questions, feel free to contact me.
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Apply Online: flagstarloans.com/lallison

Most lenders use modification as a tool to help those with missed payments or serious threat of foreclosure.

If you have the equity and the credit, I would just find a mortgage broker and refinance.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com

Pat,

Talk to your lender. They may do an interest rate reduction / conversion to fixed or a re-capitalization to fixed. If you are not behind and have great credit the Refi option is open if they say no. I assume you want to avoid the refi costs. Most loan modifications are oriented for people behind in payments.

Jon Tucker, RE/MAX 100, TuckerRealty@comcast.net