HI cdelgado13,
Welcome to the forum and thank you for joining..............
The options are up to the investor on your loan and what they are willing to do for a modification................
Because your loan is already amortized over 40 years, which is what they would extend a 30 year term to for a lower payment, and you are paying interest only at 5.25% a modification may in fact raise your payment which won't be of any help.........that part is correct........depending on the investor on your loan..........they may require to fully amortize the payment and escrow for taxes and insurance.
If this is your only property and is the owner occupied principle residence you may want to see if NACA can help you instead...........
click on the link for the info..........
https://www.naca.com/refinance/refinanceTenStep.jsp