No, they are not the same.
- A refinance replaces the existing mortgage with a new loan with a lower rate, and/or more favorable terms, such as a fixed rate loan versus an adjustable one. It is a more permanent solution than most loan modifications, and usually offers greater advantages.
- A loan modification is when a lender discounts (reduces) the principal balance of a loan because you pay it off early, or
agrees to a loan modification (a “workout”) that
includes a reduction in the principal balance of
a loan, the amount of the discount or the
amount of principal reduction is canceled debt. See Why did I get a 1099-C from my mortgage company?
Related information:
