What’s the difference between home loan modification and mortgage refinancing?

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home loan modification vs mortgage refinancing, are they the same thing?

My mortgage loan is about to be sold to Chase and my payments will begin to be made payable to them next month. I would like to refinance but I live in a very rural area and there is actually not a Chase within 200 miles from me.

Can I refinance with them without being close to them? Would that be a hassle? Also I have an appraisal from about 3 months ago, can they use that appraisal or will they use their own and how will that work since I am so far away?

5 Comments
  1. Reply
    echo4
    January 27, 2011 at 5:26 pm

    No. home loan modification can mean lowering your overall debt to the bank/ mortgage holder. Refinancing doesn’t imply this at all.go to my blog for more info…http://home-loans-jd.blogspot.com/

  2. Reply
    kat
    January 27, 2011 at 6:20 pm

    A mod will take your existing loan and make changes to it it can lower your interest rate and your payment or just lower your payment the bank will take your financial information from you and then they will determine how much you can afford to pay a month then the mortgage company will make a decision based on the information they have got from you if they will do the mod but with the new obama plan they will give you a mod for 3 months to see if you can make the new payments is you can then you get the mod if you can’t then you don’t and the obama plan will give you a fixed interest rate instead of an adjustable one
    A refinance will give you a completely new loan so you could get a lower interest rate and a new payment but if you are behind in your current mortgage most banks will not touch your loan and you will have to try and get a modification

  3. Reply
    James G
    January 27, 2011 at 6:46 pm

    Home loan modification is modifying the existing terms and conditions of your current mortgage. Usually a fee is required upfront. It usually takes about 90 days. On average this fee amounts to about 3000 dollars. Usually a modification is done only when you present a significant risk to the lender, such as upside down mortgage, loss of job, illness, or a drastic increase in rate or payment usually you are behind in your payments. No credit check is required.

    Mortgage refinancing is selling your existing mortgage note to another lender by increasing the loan amount to cover the costs associated with the refinance. Usually this ends up costing you more money than a mortgage modification about 3000 dollars for every 100000 dollars financed. You need good credit to refinance.

  4. Reply
    Biggie @ Arbor Mortgage
    January 27, 2011 at 7:38 pm

    You probably can set up an account online & pay your mortgage. If you refinance, they will probably send you your application via email. They will probably use their own appraisal, but make sure you tell them you have one from 3 months ago.

  5. Reply
    glenn
    January 27, 2011 at 8:18 pm

    If you wish to refinance with another company you can have them arrange (thru the escrow or title company) to pay off the Chase loan. If you wish to refinance thru Chase, I would call them up and speak to them directly. The reason a bank has an appraisal done is to protect them- not you so they will very likely require that a new appraisal be done by someone they trust- but I would tell them about it and see what they say.

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