A mortgage loan modification is a change in your loan terms. The modification should be designed to reduce your monthly payment to an amount you can afford.

Modifications come in different forms. Some extend the number of years you have to repay the loan. Others might reduce your interest rate or even reduce your principal to help you make your monthly payments.

TIP: Carefully consider what kind of modification addresses your needs best. If you receive a loan modification and you still can’t make the payments, you may lose your home. If you’d like to learn more about your options, talk to a U.S. Department of Housing and Urban Development (HUD)-approved housing counselor. Call the CFPB at 1-855-411-CFPB (2372) to be connected to a HUD-approved housing counselor today.