WHAT IS A LOAN MODIFICATION?
Q: What is a loan modification?
A: "A loan modification is simply a modification of the terms of your current loan. Compared to a refinance where you're getting a new loan, a loan modification is changing the terms of your current loan. For example, you can change the interest rate, you can extend a timeframe, or you can lower the principle balance. All those things and any other terms that might be changed would make up a loan modification."
A: "A loan modification is simply a modification of the terms of your current loan. Compared to a refinance where you're getting a new loan, a loan modification is changing the terms of your current loan. For example, you can change the interest rate, you can extend a timeframe, or you can lower the principle balance. All those things and any other terms that might be changed would make up a loan modification."