Definition: Mortgage Modification: A term used to describe a process by which an individual or company takes out a new mortgage, typically with a lower interest rate or payment plan, in order to reduce their monthly payments, save money on interest costs, or refinance existing loans. Definition: - Mortage modification refers to the act of making a change to a borrower's loan that would lower their monthly payments without increasing their interest rates. - It may involve altering the terms of the mortgage agreement, such as changing the length of the term, the payment schedule, or the interest rate, to make the repayment more affordable for the borrower. This can be done by either renegotiating with the lender, refinancing the loan, or changing the terms of a pre-existing loan. - The purpose of mortgage modification is to help borrowers reduce their overall monthly payments and manage their finances better, often in order to improve creditworthiness or streamline their financial situation.
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