Citigroup homeowners who are looking for a more affordable mortgage payment often turn to either a home loan modification or mortgage refinancing in order to lower their monthly home loan payment. Homeowners are often unsure of whether they should choose a mortgage modification or refinance their home loan, but the situation a homeowner is in will usually make that decision for them.
Home loan modifications, and subprograms within the Making Home Affordable Program, often require that a homeowner be delinquent in their mortgage payments or have some other form of mortgage trouble that would make refinancing unlikely. An underwater mortgage, for instance, is just one of the many situations that homeowners have been facing and while there are programs to combat this trouble, traditionally refinancing an underwater home may not be possible. There are some lenders who are using underwater refinancing plans, but, again, this is not traditional refinancing.
Homeowners who have a good credit score, are current on their mortgage, and have equity built in their home may be able to take advantage of mortgage refinancing in order to get a lower monthly mortgage payment. Mortgage interest rates are quite affordable at the present time and many homeowners have even refinanced to get a record low mortgage rate. While refinancing in this situation is not guaranteeing a homeowner a lower mortgage payment or mortgage rate, those who are in a good financial position may stand to benefit if they can refinance their home for a lower rate.
Homeowners who can refinance are often advised to talk with their lender or other mortgage lenders to see who can offer them the better mortgage rate. However, any homeowner who may have missed payments or is it a bad financial situation needs to speak with their lender or consult the Making Home Affordable website in order to look over their options for a home loan modification or some other form of mortgage assistance for a distressed homeowner.