Do you have to have funds to put towards a loan modification?
Posted by admin | Under FHA Mortgage Saturday Nov 29, 2008Would like to do a loan modification for an existing mortgage. They want funds before they will do it? Is this necessary?
It sounds like a modification is another term for re-financing. These funds they require are closing costs just like there were with your original loan.
If you have an adjustable rate mortgage, it might be a good idea to pay the costs to re-finance to a fixed rate loan. If it will take you a long time to recover the closing costs and you already have a fixed rate loan, it might be a good idea to just put some extra payments towards principal.
Depends on the modification you want.
References :
It sounds like a modification is another term for re-financing. These funds they require are closing costs just like there were with your original loan.
If you have an adjustable rate mortgage, it might be a good idea to pay the costs to re-finance to a fixed rate loan. If it will take you a long time to recover the closing costs and you already have a fixed rate loan, it might be a good idea to just put some extra payments towards principal.
References :