Posted on: 25th Sep, 2009 08:35 am
I am confused. In most of the cases, people are opting for loan modificaion so that monthly mortgage payment remains affordable for them.
But on the other hand will it be a costly process for individual?
But on the other hand will it be a costly process for individual?
In the long term they may end up paying more in interest, if they keep the loan for the extened terms
yes. one has to pay back mortgage as fast as possible. reducing monthly installment simply means longer duration of mortgage. in other words you are paying more.
But you do not have any other option.
But you do not have any other option.
Definately it is costly as you are paying more interest.
So one should select low term mortgage loans to minimise interest payable.
So one should select low term mortgage loans to minimise interest payable.
and you will get better interest rates with shorter duration mrtgage
Yes in long run it will help and also you can negotiate with your lender.