Many Wells Fargo’s homeowners, along with homeowners from other lenders across the nation, have been using refinancing in order to get a lower monthly mortgage payment. However, many people have also sought out a home loan modification in order to make their payments more affordable each month.
This has left many homeowners asking the question which route is going to be best for them when it comes to getting a more affordable home loan payment. When it comes to refinancing versus a home loan modification, however, a homeowner’s situation is going to dictate which route will be available.
Homeowners who want to refinance their home will have to be in a good financial position to do so. Having a good credit score, equity built in your home, and being able to afford the costs that come with refinancing will be the only way in which choosing this option will be beneficial. Refinancing a home loan can bring a lower mortgage rate and monthly mortgage payment, but homeowners who may be in a difficult financial situation will not likely have this option available.
However, a Wells Fargo home loan modification is available for those who qualify and are in need of a more affordable home loan. Lenders across the board in the Making Home Affordable Program have been criticized for their participation in the modification program but permanent home loan modifications are on the rise.
Homeowners who may be able to benefit from refinancing are often advised to talk with their lenders and other financial institutions as well to see who can offer them the best mortgage rate when they refinance. However, if a homeowner can only seek a home loan modification then consulting with their lender and visiting the Making Home Affordable website is probably going to be their best option.