×

Go Back

Advice Topics

Top Contributors (View All)

Find a Top Real Estate Agent Near You

Search Now

Talk to me about mortgage recasting?

What is mortgage recasting? How do i know if I should do it? And how often should I do it?

I took out a loan $350K at 6.6% last year. Thanks!
Asked By Sarah | Venice, FL | 708 views | Terms Definitions | Updated 1 year ago
Answers (4)
Sort By:
profile img
Novice
2 Answers

A Recast is a way of restarting the amortization of your current mortgage terms. Depending on the lender, you may have to pay a minimum amount in order to recast. If you had an original mortgage term of 30 years, the lender would restart your amortization based on the amount owed currently and a 6.6% rate. This would decrease the monthly payment from what you are paying currently.

A recast would make sense for someone that has an interest rate that is below market rates. Many Americans have rates under 4% that do not want to refinance out of fear of losing the low interest rate.

I would love to talk further with you to see if I can help meet your goals. I am licensed in Florida and would be happy to help!
profile img
Pro
91 Answers
Lisa and Greg Harris

eXp Realty, LLC

(42)

To Recast a loan, it depends on the lender and type of loan you have and if the lender allows a large payment option to recast a loan. This will reset the amortization of the loan. But typically requires a large amount of money to put into the loan. Check with your lender to see if this an option.

Are you ready to find a top agent near you?

Browse profiles of the highest ranked agents in your area and find one that meets your specific needs.

Search
profile img
Rising Star
25 Answers
Sami Vecchiolla

COMPASS GREATER NY LLC

(17)

Reach out to your lender to see if this is an option for you. It is a great way to lower the monthly costs but sometimes it requires an additional payment upfront
profile img
Rising Star
11 Answers
JULIE Nirschl

Long & Foster Realtors

(81)

Recasting is generally done when someone wants to dramatically pay down their mortgage to lower their monthly payments. It would most likely happen if you didn't have the cash up front, so you had to borrow more money with the initial mortgage. For instance, let's say you put 5% down payment on a home, but then you sold your other home after you closed on your new home. You then had an extra hundred thousand dollars that you wanted to put down on the new mortgage. At that time, you could recast your mortgage to get a lower monthly payment, reflecting the smaller amount you are borrowing and amortizing it over the life of the loan.

Related Questions

Search for Agents by Top U.S Cities
Search for Agents by States
Search for Company by States