Do you know about Recasting?

How to recast your mortgage to lower your monthly payment.

Want to lower your monthly mortgage payment without refinancing? Consider a mortgage recast. When you recast your mortgage, you’ll make a lump-sum payment toward the principal balance of your loan Then, your loan servicer will re-amortize your mortgage with the new, lower monthly payments. Unlike a refinance, you’ll keep your same interest rate and term.

Recast Requirements*

• The first loan payment has already been made

• The minimum payment required to qualify for a recast and re-amortization is $10,000

• A $300 to $500 non-refundable processing fee is charged

• The recasting process typically takes between 45 to 60 days to complete

• Conventional loans only *Additional requirements or limitations may apply

One thing you need to keep in mind is not all lenders provide the recasting service so you have to ask it to your loan officer or current lender.