Should I Recast or Refinance

The benefit of a mortgage recast is simple: It lowers your monthly payments, making your housing costs more affordable. If you paid a lump sum toward your mortgage without recasting, you’d reduce your balance, but your monthly payments would stay the same.

Does recasting make sense?

The benefit of a mortgage recast is simple: It lowers your monthly payments, making your housing costs more affordable. If you paid a lump sum toward your mortgage without recasting, you’d reduce your balance, but your monthly payments would stay the same.

Does recasting reduce interest?

Recasting can lower the amount of interest the borrower will pay over the life of the loan if a sufficiently large principal payment is made, reducing both the interest and principal remaining on the loan’s new monthly payments.