A mortgage loan modification changes the terms of your current mortgage to help make payments more manageable.
It’s different from refinancing, which replaces your old loan with a new one.
With a loan modification, your lender adjusts parts of your existing loan. This might include:

• Lowering your interest rate
• Extending your loan term
• Switching from an adjustable-rate loan to a fixed-rate loan

These changes can lower your monthly payments and make your mortgage easier to afford.
Because foreclosures are costly for lenders, many are happy to work with borrowers to find a solution through loan modification.

Is a Mortgage Loan Modification a Good Idea?

A mortgage loan modification can be a helpful tool if you’re finding it hard to keep up with your mortgage.
It’s designed to help you avoid foreclosure or bankruptcy, which can affect your credit and future home buying for years.
A modification can give you peace of mind and a fresh start.

While it’s not the best choice for everyone, it’s worth exploring if refinancing isn’t an option due to credit challenges.
Talking with your lender will help you find the best path forward.

Types of Mortgage Loan Modifications

Here are some common ways lenders adjust loans to support homeowners:

• Rate reduction: Your lender may lower your interest rate for a set time or for the life of the loan.
  This lowers your monthly payments, giving you some breathing room.
• Principal deferral: Your lender may reduce your monthly payments by postponing part of the loan principal.
  You’ll pay this amount later when you sell, refinance, or pay off your loan.
• Loan extension: Your lender might lengthen your loan term.
  This reduces your monthly payments, making it easier to stay in your home, even if you pay more interest over time.

How to Get a Mortgage Loan Modification

If you’re having trouble making your mortgage payments, reach out to your lender as soon as possible.
Acting quickly can make a big difference. Lenders may ask for proof of your financial hardship, so be ready to share some paperwork.

Here’s what to gather:

• Your income and expenses
• Your mortgage statements (with your loan number)

You can also get free advice from a HUD-approved housing counselor before contacting your lender.
They can guide you through the process and help you understand your options.

If your request is denied, don’t lose hope — you can appeal.
A HUD-approved counselor can assist you with the appeal and help you explore other options.

Contact Us Today

If you have a Horizon home loan and are having difficulty paying your mortgage, it's important to reach out to our mortgage lending team as soon as possible.
We'll listen to your situation and help you explore options for moving forward.
Give us a call today at 800.852.5316. We truly want the best for you!