Loan Modification Calculator
Calculate new monthly payment and savings from loan modification with updated interest rate and terms.
How it works
Compares your current monthly payment with the modified payment based on new interest rate and remaining term. Calculates monthly and total savings over the loan life.
Example
$300,000 balance at 6% modified to 3.5% over 25 years = $456 monthly savings.
FAQ
When should I consider a loan modification?
Consider loan modification when facing financial hardship, struggling with current payments, or when interest rates have dropped significantly since your original loan.
What types of loan modifications are available?
Common modifications include interest rate reduction, term extension, principal forbearance, or conversion from adjustable to fixed rate.
Does loan modification affect my credit score?
A successful loan modification may be reported as 'paying under modified terms' which is better than foreclosure but may still impact your credit score.
How long does the loan modification process take?
The process typically takes 30-90 days, depending on the lender and complexity of your financial situation.
Can I get a loan modification if I'm current on payments?
Some lenders offer modifications for current borrowers facing imminent hardship, but most programs require demonstration of financial distress.