Mortgage fix may hurt credit score (page 3)


"In general, a refinance or loan modification will have a favorable impact on someone's credit score because the amount of their monthly debt obligation is often lower," Benaroya says. "The overall debt can be lower, too, if the lender has forgiven some of the principal on the mortgage. In addition, paying the new mortgage on time for six to 12 months helps begin the process of credit repair." However, homeowners who make late or partial