Mortgage recasts are becoming more common with this competitive market.
A mortgage recast is when we recalculate your monthly payment on your current standing mortgage with us, based on the outstanding balance and remaining term you currently have. This is a great option for a someone who wants to reduce their monthly payment by putting more money down after closing.
A great time to do this would be:
- You receive a large bonus. If you receive a large sum of money (in the form of a bonus or other avenue) and would like to reduce your monthly output, instead of just applying the sum directly towards the balance, this would be the way to go.
- You haven’t sold your house, but are buying a new house. With a mortgage recast, you can purchase a new house with the minimal amount down required by your program (if you qualify), and then sell your current house after purchasing and apply those sale proceeds to your new residence.
The advantages include:
- Keep your current rate. With rates on the rise, this would allow you to purchase sooner and a recast would keep your rate at closing.
- No application process or outside closing costs. Due to not needing to refinance or requalifying, there is very little needed for a recast. There are also no title, appraisal or county recording fees.
Is a recast right for you? Contact us today to see!