A loan modification will take the mortgage you now have and change the interest rate and payment requirements in order to achieve a fixed rate you can afford.
This way, you do not have to move out, sell your home or have the bank take it back. Loan modifications are best for the home owner because changes in rates and payments do not result in the need for a new closing, legal fees, survey, appraisal, or taxes. In contrast, if you "refinance" a loan, you'll be required to have a closing and will have to pay a variety of fees and taxes. It will save you money in the long run to modify your loan!