Homeowners with Bank of America, along with homeowners from other lenders, often wonder if refinancing or a home loan modification will be best for them when it comes to making their home more affordable. However, what many people fail to realize is that while refinancing can be beneficial and bring a lower monthly mortgage payment, some homeowners may not be in the position to use refinancing in an advantageous way, so a modification will be required.
Typically, a homeowner who can get a more affordable home loan by refinancing will have a great credit score, equity built in their home, and be able to afford the costs that come with refinancing. Many homeowners have seen record low interest rates when they refinanced over the past months, but this will not be the case for every homeowner who refinances in the hopes of getting a lower mortgage payment.
Homeowners who have become delinquent in their mortgage payment or may have an underwater mortgage will not be able to refinance their home in a traditional manner, in most cases. There are underwater mortgage refinancing options, however, home loan mortgage modification programs and other forms of mortgage assistance may be the only route these homeowners can take. Homeowners who might be struggling financially and will not be able to afford the costs of refinancing, in most instances, will have to talk with their lender about a mortgage modification instead.
The home loan modification program often requires that a homeowner be delinquent in their home loan before you can use many of the program’s various assistance plans. Homeowners that are struggling to make ends meet may want to talk with their lender in order to avoid becoming delinquent on their home loan. While there are various options for making a home more affordable, Bank of America homeowners and homeowners with other lenders as well are going to need to talk to their mortgage lender or consult the Making Home Affordable Programs in order to find assistance options that will meet their particular situation.