What stays the same
The interest rate and original maturity date generally stay the same. This is not a refinance and usually does not create a new loan.
Mortgage Strategy
What is a mortgage recast?
A recast applies a substantial principal payment and recalculates the scheduled payment on the lower balance without replacing the existing mortgage.
A common move-first strategy
A homeowner may buy before selling, then apply sale proceeds to the new conventional mortgage and request a recast.
Availability varies
Not all loans, investors, or servicers allow recasting. Minimum principal payments, seasoning, fees, and request procedures vary.
Confirm before relying on it
Get the recast rules from the lender or servicer before building the purchase plan around a future lower payment.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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