If you think you will have difficulty making mortgage payments, yes, it may be a good idea to request a loan modification from your lender. Be sure to agree only to terms that you will be able to handle in the future. Don't agree to a modification that you can't afford. For additional assistance and information about repaying your mortgage, also consider contacting a nonprofit credit counseling agency with certified housing counselors. When inquiring about refinancing, check if your financial institution charges closing costs. These may be small, but always be aware of added costs when changing your original loan before signing. The federal government has established a new loan modification program. You can get more information about mortgage modification through the Home Affordable Modification Program at http://makinghomeaffordable.gov. Another way to address your mortgage costs is to carefully reexamine all of your household expenses to see if there are ways to pare down costs. There may be expense categories that can be reduced through careful comparison shopping and other cost-reducing strategies. We would like your feedback on this Personal Finance Frequently Asked Question.

Browse related Faqs by tag: personal finance, credit, homeownership