Credit History

• To refinance, as part of the qualification process, you cannot have been more than 30 days late on your mortgage within the past year.
  
  

Significance

• To qualify for refinancing under the Making Home Affordable Program, your first mortgage balance cannot exceed 125 percent of the fair market value.
  
  

Considerations

• When you refinance your mortgage you receive new terms and agreements. Contact your mortgage lender or a HUD-approved housing counselor for all of the particulars.
  
  

Modifications

• When you modify your loan your payment will be reduced along with your interest rate. Lower payments help borrower's stay in their homes and avoid foreclosure.
  
  

Hardship

• You may qualify for a modification if you are experiencing some sort of hardship such as unemployment, death in the family or a substantial reduction in your income.
  
  

Expert Insight

• A mortgage received before January 1, 2009 is another qualification used to determine if you are eligible for a modification. Everyone that qualifies for a modification may not qualify for a refinance and vice versa.