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longislemom
LIF Adult
Member since 8/06 912 total posts
Name:
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Refinancing and loan modification
Does anyone know the difference? Please explain to me in layman terms how to get my mortgage modified if I cant get a refi because of debt to income ratio.
I need my mortgage to be at least $400 or $500 less and I see interest rates are pretty low right now.
I have about 6K in credit card debt, 60K in student loans thats going nowhere fast and my mortgage is 268K.
Also is there any institutions offering no closing costs?
(ok to FM)
Thanks. Im frustrated.
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Posted 8/6/20 6:33 PM  |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Refinancing and loan modification
I’m not an expert and not 100% sure but a modification is usually done when you are behind and the lender can change the term of the loan etc. a refi is an entire new loan.
You would have to work with your lender on a modification a new lender could be done on a refi.
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| Posted 8/6/20 8:37 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Refinancing and loan modification
Have you reached out to find out about refinancing? Maybe with new lower payments you would qualify? Maybe if you roll in some of other monthly debt you could qualify?
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| Posted 8/7/20 7:59 AM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Refinancing and loan modification
A modification is when you are having trouble paying your current loan- this needs to be proven and is very difficult to get approved. (although now with COVID, maybe they are easier).
A refinance is just basically getting a new mortgage with new terms and paying off your old loan with that one.
Have you spoken to different mortgage companies/banks? If the bank is telling you your debt to income ratio is too high, you could look into adding a co-signor to the loan- a family member with more income that could help.
A few things needs to be considered:
What is your current rate?
FHA or Conventional loan?
Are you looking to cash out to pay off debt or just lower the rate/payment?
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| Posted 8/7/20 10:01 AM |
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valentinesbaby
LIF Adult
Member since 2/20 900 total posts
Name:
Valentines
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Re: Refinancing and loan modification
BFCU has no closing costs for refinancing
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| Posted 8/7/20 1:39 PM |
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longislemom
LIF Adult
Member since 8/06 912 total posts
Name:
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Refinancing and loan modification
Thanks guys.
I currently have a FHA so I want to change to convent. to get rid of the PMI.
i just want a lower rate and monthly payment.
Valentine - do you have a referral at BFCU? I tried looking on the website but I dont see there is no closing costs.
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| Posted 8/7/20 9:59 PM |
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valentinesbaby
LIF Adult
Member since 2/20 900 total posts
Name:
Valentines
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Re: Refinancing and loan modification
Posted by longislemom
Thanks guys.
I currently have a FHA so I want to change to convent. to get rid of the PMI.
i just want a lower rate and monthly payment.
Valentine - do you have a referral at BFCU? I tried looking on the website but I dont see there is no closing costs.
I will message you :)
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| Posted 8/7/20 10:11 PM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Refinancing and loan modification
with a loan modification, you can't lock in at a new rate typically. I reached out to my bank shortly after a refi when rates dropped and asked if I can do a modifcation to get the lower rate, and they stated modifications are typically only for people who need to lower their mortgage payment by extending the term length of the loan in order to stretch the payments out. For example, going from a 25 year to a 30 with your current rate
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| Posted 8/8/20 9:47 AM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Re: Refinancing and loan modification
Posted by valentinesbaby
BFCU has no closing costs for refinancing
Bethpage? They absolutely have closing costs for refinancing... Literally just contacted them less than a month ago. Their rate was higher than a few of the other FCUs, and their closing fees were actually higher too. Total closing costs BEFORE pre-paids was over 9k
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| Posted 8/8/20 9:49 AM |
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Opal
LIF Zygote
Member since 2/18 35 total posts
Name:
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Re: Refinancing and loan modification
Posted by mommy2be716
Posted by valentinesbaby
BFCU has no closing costs for refinancing
Bethpage? They absolutely have closing costs for refinancing... Literally just contacted them less than a month ago. Their rate was higher than a few of the other FCUs, and their closing fees were actually higher too. Total closing costs BEFORE pre-paids was over 9k
I had the same experience with BFCU - I'd have to look back at the numbers they gave me, but there were definitely closing costs. I have an account with them and it made no difference.
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| Posted 8/8/20 10:20 AM |
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valentinesbaby
LIF Adult
Member since 2/20 900 total posts
Name:
Valentines
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Re: Refinancing and loan modification
I should had said we didn’t need to have any upfront closing costs and any money to do the refinance.
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| Posted 8/8/20 12:59 PM |
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