whiskeyman510 asked:


I am considering a home loan modification to reduce my interest rate (and thus my payment), but I was told by the mortgage company it has a negative affect on one’s credit score, but they couldn’t give me details.

I don’t want to refinance as I probably won’t remain in the house long enough to cover the closing costs.

My interest rate, while fixed, is high (7.5%). My credit score is good (740)

For anyone who has done this or is in the industry; any information is appreciated.
I am not behind at all on my payments, and not likely to be. I just feel 7.5% is way too high in today’s environment and I think I’m paying too much but don’t want the expense of a refi.

SHELDON

2 Responses to “How Does a Home Loan Modification affect your credit score?”

1. Paul H on November 13th, 2009 4:05 pm

   HARRIS

   Hello,

   I do loan modifications for the company I work for. As far as your credit report it depends on your lender. Some will report you 30 days late, others are doing so many that they don’t have to report to the credit companies. Even if they do, if you make payments on time for six months it will come off of your credit report.So if you do not plan on making a big purchase in the next six months I would not worry about the short term credit. We able getting mortgage balances reduced to today’s market value and getting our customer fixed rates as low as 3% for 30 -40 years. This is better than a refinance. If you need help send me an e-mail @

2. Ed Atun on November 13th, 2009 5:26 pm

   VALENTIN

   It might not ever be reported. But if it were reported, it has a slight chance of being seen in a negative light if it is done in 2008. Everyone in the credit industry knows what is going on in the mortgage business… and it isn’t good..

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