A mortgage recast is a process where a borrower makes a lump-sum payment towards the principal balance of their loan, and the lender recalculates the monthly payments based on the new, lower balance. The interest rate and term of the loan remain the same, but the monthly payments can be lowered because the principal balance has decreased. Mortgage recasting is different from refinancing, which involves taking out a new loan with a different interest rate and term.

Here are some key points to know about mortgage recasting:

• A mortgage recast is a good option for homeowners who want to reduce their monthly payment without changing the terms of their loan.
• Homeowners can recast their mortgage when they make a large lump-sum payment towards the principal balance of their loan.
• Recasting a mortgage doesnt require a closing process or restart the clock on the mortgages duration.
• Recasting a mortgage doesnt change the interest rate, remaining loan term, or equity.
• Not all types of mortgages qualify for recasting, and its important to talk to your lender to see if its an option.
• Mortgage recasting can be a good option for homeowners who receive a large amount of money and want to lower their mortgage expenses.
• Mortgage recasting can also be a good option for homeowners who are moving and want to reduce their new mortgage payments after the sale of their old house closes.
• Homeowners should consider their current and future financial needs before committing to recasting their mortgage.

Overall, mortgage recasting can be a helpful tool for homeowners who want to lower their monthly mortgage payments without changing the terms of their loan. Its important to talk to your lender to see if its an option and to consider your current and future financial needs before making a decision.