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.
Related Mortgage Terms
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