Question regarding modification. With the rates going so low I inquired about refi on my mortgage, I was told I could do a refi but that it would take 2 years for the reduced rate to equate to the closing costs that would be charged for this transaction. I was offered the opportunity to modify my existing mortgage instead and did so, with a rate reduction of 1.25%. Obviously I am happy with this result, I made the first payment under the new modification agreement last month.
My husband and I are considering contracting for a new construction home that will be ready around May 2021. I just pulled my credit yesterday and while my mortgage scores are fine and my payments are all listed as "OK" since inception of my morgage in early 2018, with the most recent update in Sept 2020, I now have remarks such as "Loan modified fixed rate", "Loan modified non-government" and "Loan modified but not under a federal government plan". Are these remarks going to cause an issue with my pre-approval for the new house or can I simply explain that I elected to modify to lower my rate because it made more sense than doing a refi? We are not selling the house the modification was on. I can prove I am not financially distressed by demonstrating over $100k in my checking/savings accounts. Should I request my mortgage company remove the remarks? Will they just be removed after some period of time?
Including screen shot of my 2 year payment history - I think the first payment was actually in May 2018, not sure why nothing was reported until later in that year.
Thanks for the help!
