A borrower needs a permanent fix — not just a temporary forbearance — to keep the loan on track? PaperKit drafts a proper Loan Modification Agreement: the lender and borrower permanently amend the loan's economic terms going forward. Pick what changes: a rate change (a new interest rate going forward — PaperKit recomputes the amortized monthly payment at the new rate), a maturity extension (stretch the term to lower the payment — PaperKit re-amortizes over the extended term), or capitalize arrears (roll the past-due amounts into principal to bring the loan current — PaperKit computes the new principal and payment). Choose the context — a commercial loan, a real-estate/mortgage modification, or a consumer loan — set the outstanding balance, rate and remaining term, and PaperKit computes the new principal-and-interest payment, adds acknowledgment-and-reaffirmation, a liens-continue/no-novation clause and the modified payment schedule, then assembles the whole agreement. It's the lending-branch companion to the forbearance agreement (the permanent restructure that follows the temporary hold-off). Hosted online for the borrower to review & e-sign. Clean PDF.
The big lever — it decides what the modification changes and drives the amortization math. PaperKit recomputes the new monthly principal-&-interest payment for you.
Rate change: the annual interest rate is changed going forward. PaperKit recomputes the amortized monthly principal-&-interest payment on the outstanding balance over the remaining term at the new rate, and adds a New Interest Rate section.
Tunes the recitals, the collateral wording and the document title.
A real, section-by-section loan modification agreement. The modification choice drives what changes and the recomputed monthly payment. Publish to get a hosted link the borrower can e-accept online.
$9/mo — remove the DRAFT watermark + “Made with PaperKit” badge, unlimited clean-PDF loan modification agreements, and Pro across every tool.
A loan modification agreement is a template for convenience, not legal advice. A modification amends the terms of an existing loan; it is not a novation and does not by itself release the borrower, any guarantor, or any lien. The underlying loan, security and mortgage documents, guaranties, UCC filings and applicable state law continue to govern enforceability, and some modifications (for example of recorded mortgages) may require recording. PaperKit is not a law firm. Review the agreement and consult a qualified attorney.