Refinancing vs loan modification

I called the bank today to talk about refinancing my mortgage. Currently have a 30 year loan at 5.25%. I wanted to refinance to a 10 or 15 year loan so i could pay it off quicker. The loan officer said i would be better off doing a loan modification to 15 years/ 3.375%. The loan modification would cost half the price of a refinance. Just wanted to hear some thoughts on this. To be honest i didnt even think a loan modification would be an option. I searched the internet on loan modifications and it looks as if the main purpose of a modification is if a borrower is struggling to pay bills. In my case i am just looking to pay this house off asap. My monthly bill would only be $27 more than what i pay now if i did a modification. Any info on this topic would be appreciated.

I'm a broker in CA and I would definitely ask more questions. Do you have at least 20% equity in your home? Does Fannie Mae or Freddie Mac own the loan?

google fannie or freddie mac look up tool and that will answer your question. Also, the Harp2 is out and this for homeowner's underwater in their homes but are still current with their payments. The key is if Fannie or Freddie own your laon and if has to be purchased by them by June 2009.

I hope this helps

correct wells, citi anyone can service but as long as fannie or freddie own it before June 2009 you are in good shape. For instance Wells has a program if it's Wells to Wells and you meet the criteria no appraisal required. It's the new HARP 2.0. The first Harp program didn't help enough people.

Does Fannie Mae Own Your Mortgage? Loan Lookup Tool

Loan Look-up - Freddie Mac

here is the freddie look up in case fannie doesn't own it.

Rates have tanked the last 7-10 days but give me a scenario and I can give you a general idea of the rate.

loan amount

est value

credit score

If I have a mortgage through Bank of America, I'm I still eligible for the Harp? Also, would BOA do a "loan modification" in order to keep my business instead of seeing me reffinance with another company?

Thanks in advance for any info (obviously I havent done any research yet)

Train, you are definitely still eligible the key is to check the fannie and freddie sites. If you get a yes than the next step is that you would've had to have your current mortgage before June 2009. Let me know if you have any other questi

Wallstreet, rates have been rising but under that scenario you should be a rate around 4.5 - 4.75%. The closer you are to what you owe the better the rate. I hope that answers your questions

My loan was finalized in March 2009 thru BOA. I am currently paying 5% interest. Do you need any other specifics?

What exactly does the HARP program do? Would that be better than seeing if BOA would modify my mortgage?

Thanks for the response

Train, Harp didn't help enough home owner's trying to do the right thing so Congress can up with HARP 2.0. Harp 2.0 let's people refinance that are upside down in their home. That being said you have to be current and haven't missed any payments in the past 12 months and has to be owned by fannie mae or freddie mac. In your situation BofA services the loan but you need to find out if BofA sold it to fannie or freddie. I have attached some look up to tools above. Check it out and see if they indeed own your loan it will take less than 5 minutes.

The market has been on the rise and your rate is decent but depending on your loan amount, est value and credit score will determine if it's worth the effort. I have a lot of clients that are 6.5% and 100k underwater and i'm lowering their to 4.5%.

I hope this helps

use the lookup tools if they come back as No then your only other option would be to try and negotiate with the current servicer of the loan. Fannie and Freddie didn't buy that many ARM products

Does Fannie Mae Own Your Mortgage? Loan Lookup Tool