Finance
In Massachusetts, a 'loan modification' differs from a 'refinance' because a loan modification:
AReplaces the existing loan with a new loan
BChanges the terms of the existing loan (rate, term, principal) without creating a new loan✓ Correct
CIs only available for FHA loans
DRequires a new appraisal and full underwriting
Explanation
A loan modification alters the terms of the existing mortgage (such as reducing the interest rate, extending the term, or deferring principal) without originating a new loan. It avoids closing costs associated with a refinance.
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