Bank of America homeowners who want a lower monthly mortgage payment are usually choosing either a home loan modification or simply refinancing for a lower mortgage rate and payment. However, both of these options are not available for every homeowner as they require homeowners to be in different financial positions before they can be offered as an option.
The home loan modification program often requires that homeowners be delinquent or in a bad financial situation before they can obtain a modification. Homeowners who are suffering from unemployment or an underwater mortgage and cannot pay their home loan often qualify for a trial modification, but modifications are not guaranteed for every homeowner.
Refinancing is only going to benefit a homeowner who has equity built up in their home, a good credit score, and can afford the closing costs that come with refinancing. While there are refinancing options for homeowners with an underwater mortgage, traditional refinancing in order to take advantage of low interest rates that are currently being offered will not be available unless a homeowner is in a good financial position.
Bank of America homeowners who may qualify or benefit from refinancing are often advised to not only talk with their current lender but also other lenders as well. Yet, if a home loan modification is the only option for a homeowner, consulting the Making Home Affordable Program’s website or talking with your mortgage lender will probably be the best place to start.