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Mortgage Glossary

Loan Modification

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A loan modification permanently changes the terms of an existing mortgage to make payments affordable for a struggling borrower.

What Loan Modification means

It may lower the rate, extend the term, or defer part of the balance. Unlike refinancing, it adjusts the current loan without a new one.

Florida example

A Florida homeowner facing hardship gets a modification that extends the term and lowers the rate, cutting the payment enough to stay in the home and avoid foreclosure.

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Related Mortgage Terms

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