You can do a mortgage recast as many times as you would like. Check with your current mortgage loan servicer for restrictions.
There is a mortgage recast fee. The cost to recast varies for each loan servicer. It is best to contact your servicer for details.
A mortgage recast lowers your monthly payment by reducing your principal balance and keeping your loan payoff date unchanged. This can be a better option than a mortgage refinance by eliminating mortgage closing costs.
Government, private investors, jumbo loans and high balance loans do NOT allow recasting. Verify with your servicer for exceptions.
A written request must be summited to your servicer to recast your mortgage.
A mortgage recast is a process in which the terms of an existing mortgage are adjusted without changing the interest rate or loan amount. Typically, a borrower makes a large lump-sum payment towards the principal balance of the mortgage, and the lender then recalculates the monthly payments based on the reduced outstanding loan amount. This results in a lower monthly payment, making it a useful option for homeowners who want to lower their monthly financial burden without the need to refinance or alter the interest rate.
Mortgage recasting is different from refinancing, as it does not involve obtaining a new loan with different terms. Instead, it allows borrowers to leverage a substantial payment to modify the terms of their existing mortgage. Compare current mortgage rates to the benefits of a recast mortgage.
Use our free mortgage recast calculator and our free mortgage calculator with current mortgage rates to compare the savings between a recast and a refinance.
Contact us if you want a personalized breakdown of your mortgage loan options.
A mortgage recast is a smart way to reduce your monthly payment by making a lump sum payment to your mortgage principal. This can save you money over the life of your loan without affecting your current low interest rate.
However, if you don't have a lump sum available, a Home Equity Line of Credit (HELOC) can be a valuable tool. A HELOC allows you to borrow against your home's equity to consolidate high-interest debt or fund home improvements. This can significantly reduce your monthly payments while preserving your low mortgage rate.
Ready to explore your options? Contact us today for a personalized consultation.
A HELOC can be a powerful tool for debt consolidation. By consolidating high-interest debt, like credit card balances or personal loans, into a lower-interest HELOC, you can significantly reduce your monthly payments.
Before you decide whether a mortgage recast is right for you, it’s helpful to compare it to other options based on today’s mortgage rates. If your current rate is significantly higher than current mortgage rates or 30-year rates, refinancing might offer greater long-term savings. On the other hand, if your interest rate is already competitive, a recast can reduce your payment without resetting your loan. To make an informed choice, check mortgage interest rates and explore how they affect your monthly payment.
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