What’s the difference between a loan modification and normal refinancing?

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They sound the same to me. I’m just a little confused. There’s also a second mortgage and short refinance.

Can someone please verify these definitions for me and please advise as to which one would be better?

Actually, I want to know the proper definition of Banks, Credit Cards & the diff. b/w mortgage & home loans. The benefits & loses of the loans & credit cards to the banks.

Can anyone tell me from where I can get all this information?
I need it most. So, plz help me if anyone know abt it .

  1. Reply
    April 29, 2011 at 9:19 pm

    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.

  2. Reply
    April 29, 2011 at 9:52 pm

    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.

  3. Reply
    April 29, 2011 at 10:03 pm

    Bank – a financial institution that accepts deposits and channels the money into lending activities

    Credit Card – a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered

    A home loan is a type of mortgage. mortgage is a loan to purchase a property. A mortgage loan uses the property as collateral to guarantee repayment of the loan. The borrower gives the lender a lien against the property, and the lender can foreclose on the property if the borrower does not repay the loan per the agreed terms.

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