Channel3000.com
December 17, 2020 6:31 AM Kiah Treece - Forbes Advisor
Posted:
Updated:
December 18, 2020 1:29 PM
If you have enough extra cash in the bank to make a lump-sum payment and you want to reduce your monthly mortgage bill, mortgage recasting might be a good option for you. We’ll walk you through the mortgage recasting process, let you know which types of loans qualify and help you decide whether it’s the right fit for your financial needs.
What Is Mortgage Recasting?
Mortgage recasting is the process of reducing your mortgage balance through a lump-sum payment, and then making smaller monthly payments until you pay off your loan. Unlike mortgage refinancing, mortgage recasting does not change your loan term or your interest rate you’ll simply have a lower monthly payment, but you’ll also save on interest payments over the life of the loan.