Can You Refinance On A Loan Modification?

Many people want to know if you can refinance on a loan modification. The important thing to know here, is that a refinance and a loan modification essentially do the same thing. The difference between a refinance and a loan modification is that in a refinance you can pull equity out of your home, and in a loan modification you have no equity to pull.

With that said, most times there are stipulations that go along with a  loan modification that prohibit a refinance afterward for a period of 24 months. So, as long as you wait 2 years after your loan modification, there is nothing stopping you from refinancing.

As always, please check your loan modification documents, however, because not all loan modifications are created equal and sometimes the period before a refinance is extended to 5 years, and other times it’s not there at all.