Some homeowners have been able to lower their monthly mortgage costs without turning to home loan modifications. While unemployment problems and property values have caused difficulty for the housing market and homeowners, low home loan interest rates have also been available in some cases and have allowed for certain homeowners to cut their home loan costs in various ways.
Refinancing has allowed homeowners to take advantage of low interest rates on home loans and, as a result, some homeowners have been able to get a lower monthly mortgage payment by refinancing to options like a 30-year fixed rate mortgage.
Yet, other homeowners have sought to lower their overall home loan costs and have opted to shorten their mortgage term and trade lower monthly payments for lower overall costs. Homeowners who have chosen 15-year fixed rate mortgages or 20-year mortgages may see an increase in the amount they pay from month to month, but these homeowners are able to erase their mortgage debt at a much lower cost, in most cases.
These low interest rates on home loans have brought lower monthly mortgage payments for homeowners who have turned to shorter mortgages in some cases, but homeowners who have used refinancing to their benefit have typically had to choose whether they want lower monthly payments or lower overall costs when refinancing.
Successful homeowners who have used refinancing to their benefit over the past months have usually been those who could afford the costs that come with refinancing, have had an excellent credit score, and were generally in a financial position to benefit from refinancing their home loan. Obviously, not all homeowners can use refinancing to their advantage, but for those who have wished to avoid a home loan modification, these opportunities have been available over the past months.