Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
The biggest benefit of this process is that you will be able to lower your monthly mortgage payment. Since you are reducing the amount of money that you owe to the lender and keeping the same loan term, they are going to lower the amount of money that you pay them each month.
Another benefit of this process is that you will have to pay less interest over the remainder of the loan. Since the loan balance is lower, this is going to lower the amount of interest that is accruing as well.
One of the disadvantages of this program is that you will have to make a sizable payment in order to qualify. Many times, you will have to come up with at least $10,000 at one time in order to have your lender re-amortize your loan. This means that you will have to make a large contribution out of your own pocket and cut into your savings.
Another disadvantage of this program is that you will potentially lose some of your mortgage interest deduction on your taxes.
- What To Do When Mortgages Default
- Short Selling a Rental Property
- 3 Warning Signs of Loan Modification Scams
- Second Mortgages: Advantages and Disadvantages
- Home Equity Loans for People with Bad Credit
- Should You Refinance? Make Sure the Timing is Right
- Appraisal Basics
- What Lenders Don't Reveal About Home Equity Loans
- Low Down Payment Loan Qualification