Loan modification or refinance?

[Josephine Breign]

Hi BP!

I own a 4plex that is currently coming out of forbearance, and need some advice on next steps. I've been offered a loan mod/partial claim by the mortgage company, but there is more than 20% equity in the property and would it be a better idea to just refinance? If anyone knows a mortgage broker or lender that can provide some advice, that would be so helpful. 

Thanks!

[David Bilandzija]

Does it serve as your primary residence?  Personally I'd opt for a refinance as long as your new loan doesn't place you into a difficult financial position each month. The equity you've built in the property gives you options and flexibility.  Refinancing will also possibly lower your a payment but could also reset your amortization schedule.  A loan mod could potentially increase the interest paid over time and slow your amortization down and the rate at which you reduce your principal loan balance.  Depends on the agreement offered.  Good luck.