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What Is Mortgage Recasting? | Mortgages and Advice
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What Is Mortgage Recasting? | Mortgages and Advice

Homeowners looking to lower their monthly mortgage payments often consider refinancing, but a loan recast could be the better choice in some cases. Mortgage recasting involves paying off a large portion of your principal and then the lender adjusting your payment schedule based on the remaining lower balance. A recast reduces your monthly payments and total interest charges, and it is simpler than a refinance.What Is Mortgage Recasting?A mortgage recast, or loan recast, is an arrangement with your lender or loan servicer to apply a large amount of cash toward your principal. The lender then recalculates your mortgage payments based on the new lower balance. The recast will naturally lower your payments, and you won't need a new loan with new terms."It's becoming popular again for two re...