Loan Modification Calculator
See how different modification options affect your monthly payment and total cost.
Compare Before & After Modification
Adjust the modification options to see potential savings
Understanding Loan Modification
What is Loan Modification?
Loan modification is a permanent change to one or more terms of your loan that makes payments more manageable. Unlike refinancing, it doesn't create a new loan but modifies the existing one.
Common Modification Options
- Rate Reduction: Lower interest rate, lower payments
- Term Extension: Longer term, lower monthly payments
- Principal Reduction: Reduce amount owed (rare)
- Principal Forbearance: Defer part of principal
Who Qualifies?
- Experiencing financial hardship
- Current on payments or recently delinquent
- Property value may be less than loan balance
- Can demonstrate ability to make modified payments
- Have not recently received a modification
Trade-offs to Consider
- Lower monthly payment may mean more total interest
- Longer term extends debt obligation
- May impact credit score initially
- Some modifications have trial periods
- Not all lenders offer all modification types