What is the difference between a refinance and a modification?

A modification is an adjustment to the terms of an existing loan where the original loan remains in place. Regardless of the changes, the existing debt is retained. Change in a modification may include increasing or decreasing the loan amount, extending the maturity date, changing the interest rate information, changing the payment frequency or payment amount, releasing parties or adding guarantors, and adding new collateral or releasing existing collateral.

A refinance is a new loan that is taken out to pay off an existing loan.