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Saturday, August 14, 2010

2 Reasons to modify your loan

If you are a troubled homeowner who is finding it difficult to make your monthly
mortgage payments, then you can go for loan modification. Loan modification is a
revision of the terms and conditions prevailing in your mortgage loan. You can easily
pay off your mortgage if you modify your loan. Have a look at the reasons for modifying
your loan.

Lowers the interest rates: If you are not being able to arrange the monthly
payments on your mortgage, then you can enjoy lower monthly payments with a
loan modification. A loan modification will lower the interest rates on your loan
and thereby reduce your monthly payments. This will help you to pay off your
mortgage comfortably.

Extends the term of the loan: You can also extend the term of the loan. You
may have taken a 15 year term mortgage loan. But now you may be going through
a financial crunch. In such a situation modify your loan to a 30 year term loan.
An extension in the term of the loan will ensure lower monthly payments.

•Thus, if you are a financially stressed homeowner not being able to pay off your
mortgage, go for a loan modification. Pay back your mortgage in affordable monthly
payments by modifying it.


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