You'll also keep the original interest rate on your home loan. Before modifying your home loan, keep in mind to talk to your tax preparer or Certified Public Accountant to identify the tax impact. Here's when you ought to think about modifying your home loan. Applying this windfall to your home mortgage assists reduce your monthly payments, which enables you to keep more money in your pocket on a monthly basis.This could be due to a change to your income, properties or credit profile that prevents you from getting approved for a new loan. This can also be the case in a rising rates of interest environment, where it's difficult to re-finance at a lower rate than your current mortgage. will require you to obtain a new loan with a different structure, amortization schedule and rate of interest.