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What is the difference between refinancing and loan modification?
Wiki User
∙ 12y ago
Refinancing is the process of taking out a new loan in order to pay off one or several existing loans and debts. Loan modification is a change to a single loan, often to make repayments more affordable.
Depending on the details of a loan modification it may be treated as a continuation of the original loan or as a new loan. If it is treated as a new loan, it is a refinance as well as a loan modification.
However, most refinances are done for other reasons. One important one is debt consolidation, where several loans or outstanding debts (credit cards etc) are consolidated into a single loan. Another is to secure a better interest rate - for instance, if the original loan was a low-doc or no-doc loan and the borrower now qualifies for a full-doc loan with a lower interest rate; or if a fixed-rate loan is about to reach the end of the fixed-rate period and convert to the standard variable rate, refinancing to a basic variable loan may be useful.
Wiki User
∙ 12y ago
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What is the difference between refinancing and a second mortgage?
Refinancing is re-assessing the terms of your current mortgage. You are capable of refinancing any loan at any time whether it is a home, auto or personal loan. A second mortgage is a mortgage in addition to your primary note. If you obtain a second mortgage you will be liable to pay two monthly mortgage payments.
Where can you go for online loan refinancing?
There are lots of online resources for loan refinancing. The most famous are e-Loan and Lending Tree. Just google for 'online loan refinancing'.
Can title insurance be transferred when refinancing a mortgage?
Typically, a Loan/Mortgage policy cannot be transferred to a new loan as the title coverage is unique to each loan. The mortgage coverage on a loan ends when the loan is paid off and satisfied, that is why new coverage is taken out on the new loan. However, in the case of a Mortgage Modification of an existing loan, the coverage may be extended to cover the existing loan and the new loan amount of the Modification. There would still be title charges for the changes in the Mortgage Modification coverage in most cases.
i have a modular home inapark which is paid off. to apply for a loan on this home is it refinancing or a home loan?
It is refinancing not a home loan. For more information on refinancing go to web site www.ditech.com
Where can one get information on refinancing an auto loan?
Many local banks can be a source of information on refinancing a car loan. Edmunds and Bankrate also offer guides to auto loan refinancing on their respective websites.
What is the difference between refinancing and a second mortgage?
Refinancing is re-assessing the terms of your current mortgage. You are capable of refinancing any loan at any time whether it is a home, auto or personal loan. A second mortgage is a mortgage in addition to your primary note. If you obtain a second mortgage you will be liable to pay two monthly mortgage payments.
Where can you go for online loan refinancing?
There are lots of online resources for loan refinancing. The most famous are e-Loan and Lending Tree. Just google for 'online loan refinancing'.
Can title insurance be transferred when refinancing a mortgage?
Typically, a Loan/Mortgage policy cannot be transferred to a new loan as the title coverage is unique to each loan. The mortgage coverage on a loan ends when the loan is paid off and satisfied, that is why new coverage is taken out on the new loan. However, in the case of a Mortgage Modification of an existing loan, the coverage may be extended to cover the existing loan and the new loan amount of the Modification. There would still be title charges for the changes in the Mortgage Modification coverage in most cases.
What is the difference between a normal calculator and a reinancing calculator?
Refinancing Calculators typically have stripped down functions compared to your standard calculator, as they are strictly for figuring out finance related calculations such as loan interest rates and refinancing fees. In addition, refinancing calculators are typically online as opposed to physical.
i have a modular home inapark which is paid off. to apply for a loan on this home is it refinancing or a home loan?
It is refinancing not a home loan. For more information on refinancing go to web site www.ditech.com
Where can one get information on refinancing an auto loan?
Many local banks can be a source of information on refinancing a car loan. Edmunds and Bankrate also offer guides to auto loan refinancing on their respective websites.
Where can home loan refinancing be obtained?
Home loan refinancing can be obtained online or at local banks. Online, websites like LendingTree allow one to obtain home loan refinancing. Banks like Chase and Bank of America are places where one can also obtain home loan refinancing.
Where can one find information on refinancing a mortgage loan in Florida?
One can visit Bank Rate for information on how to refinance a mortgage loan in Florida. Refinancing might prove more beneficial in terms of tax, the refinancing can also fluctuate between different time periods.
How can I lower my mortgage through refinancing?
Mortgage refinancing is a good way to lower your mortgage. Refinancing brings your payments down by finding a better loan. Refinancing allows you to have lower monthly payments which will allow you to pay off your loan faster.
What companies offer auto loan refinancing?
There are several companies that offer Auto Loan Refinancing. Some online companies include my auto loan and credit provider, however you can also go to your bank or another bank like Citibank and Wells Fargo bank to get a refinancing loan.
Where can one apply for auto refinancing loan?
One can apply for an auto refinancing loan at a bank or financial lending institution. One can also apply for auto refinancing loans at most car dealerships.
How does auto loan refinancing work?
You get a loan from a bank to pay off the current loan on your vehicle. You would do this to lower your interest rate. Make sure to consider the closing costs when refinancing.
