Just about everyone goes through financial hardships at some point. Unfortunately, a poorly timed one can put your home in danger. Because of your financial troubles, you may have to miss your next mortgage payment.

What's even more concerning is the likelihood you may have more trouble paying your mortgage if things stay as they are. Thankfully, you can get a loan modification to escape that difficult situation. A loan or mortgage modification changes the terms of your existing loan so you can make payments more comfortably.

To qualify for a loan modification, your mortgage should be tied to your primary residence. Your financial troubles must also be related to a family death, divorce, or some unforeseeable calamity. Does it make sense for you to pursue a mortgage modification? Find out by continuing below.

A Loan Modification Can Lower the Interest Rate for Your Mortgage

According to SoFi Learn, a typical 30-year fixed mortgage came with an interest of 6.33% as recently as January 12th of 2023. In 2022, the average interest rate for a similar mortgage was 7.08 percent. That's a pretty significant interest disparity for similar loans to have. It's one of the leading reasons why you should be interested in a mortgage modification.

Securing a lower interest rate for your mortgage can make a massive difference. That kind of change can positively impact your financial situation immediately. Work with a lawyer to get that lower rate when you pursue your loan modification.

You Can Switch to a Fixed-Rate Mortgag

eAside from securing a lower interest rate for your loan, you should also consider switching to a fixed-rate structure. Locking it in makes a ton of sense if you like the new interest rate for your mortgage. That way, you can continue enjoying the financial benefits of your decision long-term.

Of course, there is also some risk involved here. Locking in your selected rate now could mean missing on potential savings down the line. Then again, the stability of that fixed rate may be more helpful during a trying time.

Lengthen the Repayment Period for Your Mortgage

A mortgage modification can also extend the repayment period for your loan. You'll ultimately have to pay the same amount if you ask for this modification, but the longer term will reduce your monthly obligations. Tacking on that extra time to your repayment period may not be a big deal because you know you'll be in a better spot financially by then.

Defer Payments on Your Mortgage through Forbearance

One more option involves using a loan modification to seek forbearance. Forbearance allows you to defer payments or pay only the interest on your mortgage for a set period. You will still have to pay the loan in full eventually, but you can take advantage of the reprieve now.

If you're having difficulty making your mortgage payments, remember that seeking a loan modification is an option. Change the terms of your loan so you can experience the relief you desperately need. Let us negotiate with your lender and secure the best terms for your modified mortgage. Give us a call today.