What’s a Flex refinance?
A Flex Modification is available to those with a Fannie Mae or Freddie Mac owned loan. It’s specifically geared toward those having trouble (or foresee having trouble) with their current mortgage payments. With Flex, eligible borrowers can reduce their mortgage payment up to 20 percent.
That would save a borrower hundreds every month. With 80 percent of Americans living paycheck to paycheck, a few hundred dollars could go a long way.
Do you qualify for a Flex refinance? Answer some questions at LendingTree® and find out.
Why is Flex a good deal?
A Flex Modification doesn’t just lower your payment, it also adjusts the interest rate, extends the term of the loan or some in cases forebears some of the principal balance (that basically delays payment for a set amount of time—you’ll still have to repay it eventually). A Flex Modification can result in a loan that better fits your budget. If your mortgage is putting a stress on your finances, it’s worth looking into a Flex Modification.
What’s the catch?
Not everyone is eligible for a Flex Modification. First, Fannie Mae or Freddie Mac must own your loan. Second, you’ll need to have taken out your mortgage at least 12 months before attempting to receive a Flex Modification. If Fannie Mae or Freddie Mac don’t own your loan, you can talk to your loan servicer to see if they offer similar modifications, or try to refinance your loan to get more favorable terms.
If you are eligible for a Flex Modification, you’ll likely have to complete a trial period before the modification fully takes effect. After three or four months of successfully making payments your loan modification will become permanent and you’ll likely have any late charges or fees from before the modification waived.
Should you get one?
If you qualify, and you’d like more room in your budget, you should absolutely get one. There’s a high chance it could save you hundreds of dollars every month. You could take the hundreds you save and put it in savings, double up on a car payment, and more. It’s a nice bit of savings that you could use to “snowball” your other monthly payments to get them paid off faster.
How to shop for a refinance loan
People comparison shop for everything—shoes, flights, gas, food—but when it comes to loans, so many just go straight to their bank. But going to LendingTree® is like going to hundreds of banks at once. Instead of a single offer, you’ll get multiple offers from lenders competing for your business.
Comparison shopping saves money, and a loan is just like any other product—different lenders and banks will offer different terms, rates and fees. The smartest way to get a loan is to shop around, and LendingTree® makes that easy.