If you’re a homeowner considering refinancing, one of the first lenders you should talk to is your current one. By consulting your current lender you may be able to talk them into a mortgage “modification.” The odds of them doing this for you are slight, but it never hurts to ask especially if you drop the hint that you’re going to refinance.
A mortgage “modification” is simply a change to the terms or interest rate of your current mortgage. If your lender is willing, they will modify your current mortgage by allowing you to pay a lower interest rate for the term of the loan. This modification is referred to as a ?rider? on your original mortgage. Going this route does not require a lot of paperwork and typically doesn’t cost you much. It is usually in the lender’s best interest to keep your business.
Mortgage “modifications” are also common for people who are in financial trouble. Rather than go through foreclosure your lender may agree to changing your payments and work with you. The catch is you have to ask, and ask sooner than later.