A mortgage loan modification may not be suitable option for everyone, despite the potential benefits. Before agreeing to any mortgage loan modification, it’s crucial to understand the fees involved. Here are a couple of disadvantages for you!
Way Longer
It will take longer to pay off your house if you pay off the same amount of principal with fewer monthly payments. A mortgage loan modification can make it more difficult to reach your objective of becoming debt-free as soon as possible.
A Lot More Interest
The amount of interest you pay to your lender in the end is determined by the interest rate as well as the number of monthly payments you make until your loan is paid off. You may wind up spending more money in total if you agree to a lower monthly payment without considerably lowering your interest rate because you are paying interest for a longer period of time than you would otherwise.
Be careful on making this decision if ever you decide for a mortgage modification. It may seem like a good idea for the time, but that could also be deceiving. Take note of the ones above and examine if you really want to go for that modification.