Loan Modification vs. Refinancing: Which Is Right for You?

A refinance replaces your loan entirely and generally requires you to be current on payments and qualify like a new borrower — best if your credit and income are stable and you just want better terms.

A loan modification changes your existing loan's terms (rate, term, or balance) specifically to make a struggling payment affordable, and it's designed for homeowners who are behind or at risk.

If you're current and just want to save money, look at refinancing. If you're behind or about to fall behind, modification is almost always the more realistic and faster path.