Homeowners with mortgage servicers like J.P. Morgan Chase who have been using home loan modifications a way to lower home loan payments also have options for refinancing with either their primary mortgage servicer or another financial institution as a way to also take advantage of low interest rates on home loans which are currently present. Both home loan modifications and interest rates have been in the news as of late due to the fact that a review of the federal modification program was recently conducted and interest rates on home loans are said to be climbing despite being low all year.
Yet, for homeowners with servicers like J.P. Morgan Chase, concern over home loan affordability often leads to questions as to whether a home loan modification or mortgage refinancing is the best route. However, homeowners that are able to either acquire a home loan modification or benefit from home loan refinancing are typically in very different positions in their financial life and concerning their home loan situation.
As an example, homeowners who have been able to take advantage of home loan modifications from J.P. Morgan Chase are typically those who have come upon a difficult financial time in their life and may have missed payments on their home loan. There are also homeowners who may be suffering from problems related to factors like unemployment or underwater mortgages, and as a result face default on their home loan without some form of assistance.
However, homeowners who have refinanced to a lower mortgage interest rate over the past months have been those who are usually in a good financial position, meaning they have a good credit score, equity in their home, and can afford the costs that come with refinancing, not to mention these homeowners are typically those who have been able to lock in a much lower rate, so that they benefit from refinancing.
Yet, recent news about interest rates increasing have many homeowners looking into either home buying or refinancing opportunities, but interest rates are still quite low for many who are in a good financial position and may be looking for opportunities to refinance. Despite the fact that homeowners have the option of refinancing with another financial institution on their home loan, homeowners who are, for example, with J.P. Morgan Chase and are looking for home loan modification assistance will have to talk directly with their servicer before this process can begin.
While both home loan refinancing and modifications have been useful for homeowners throughout 2010 when it comes to lowering mortgage payments, individuals who qualify for either of these two plans will, obviously, be in vastly different positions in terms of their mortgage situation and personal finances.