Not qualified for refinance? Modify Your Loan ~ Pinoy Reviews

Bringing Filipinos news, reviews, and resources about the rest of the world.

Thursday, February 12, 2009

Not qualified for refinance? Modify Your Loan

Speaking of refinance, there are some certain criterias that some banks need you to qualify for before they could grant you a refinance. If your loan amount is greater than your home value, chances are, you might be declined for a refinancing scheme. Don't fret, there are other options. Loan modification is one option that homeowners choose when they get declined for refinancing.

Of course, there are criterias that you need to be qualified for but it's less stringent than refinancing. With a loan modification, the homeowner's mortgage is modified by: fixing the adjustable mortgage rates, extending the term, reducing the principal balance, lower interest rates, and forgiving past due accounts and fees.

You can apply for a loan modification yourself or through your loan broker.