Author Topic: Should I do a loan modification?  (Read 222 times)


  • Bristles
  • ***
  • Posts: 371
Should I do a loan modification?
« on: January 08, 2021, 12:22:49 PM »
My credit union that I have my mortgage with has reached out to me to possibly do a loan modification.  I currently owe 61k on my house and have 64 payments remaining.  They said for a $300 fee they will lower my rate down to 2.1% and put me on a 60 month term.  It's not a huge savings in interest as I'm currently at 2.6%, but it will lower my monthly payment about $320.  They own the mortgage so no credit checks or anything like that.  Basically pay the fee sign 2 or 3 documents and be done with it.  In the past I've told myself when my balance gets to 50k I might just pay it off cash just so I could tell myself I have a paid off home...but I know it would hurt me mentally dropping that much cash.  Basically I'd use my emergency fund to pay off the house and then rebuild that.  I'm well aware I keep to much cash on hand, but it's just something I've always done.  So what would everyone else do in my situation?


  • Handlebar Stache
  • *****
  • Posts: 1344
Re: Should I do a loan modification?
« Reply #1 on: January 08, 2021, 12:59:36 PM »
This sounds really good.  I don't know if I'd pay it off at $50k (I wouldn't), but lowering your monthly payment by $320 and your term by 4 months seem like obvious wins.  You come out nearly $20k ahead.  I wish this would come my way!