What is the difference between a mortgage refinance and a mortgage modification?
A mortgage refinance normally requires a complete re-qualification for the new loan under current mortgage guidelines. The re-qualification could also require a new appraisal of your home. Many real estate markets are considered “declining markets” by most lenders and your home may not appraise high enough to qualify for a new loan. Additionally, since a refinance is a completely new recorded loan there are additional costs associated with the appraisal, title work, subordination fees for second mortgages (HELOC), government taxes and recording fees (these vary state to state) and lender fees.
