What Is A Mortgage Recast?
How Does It Work? – How Much Will It Cost?
A mortgage recast is when you make a lump-sum payment toward the principal balance of your loan. Your lender will then re-amortize your mortgage — your loan will now have a new (lower) balance.
The result is a lower monthly mortgage payment, but your interest rate and term remain the same.
A recast can also works should a person receive a large amount of money. For example, a homeowner receives an inheritance or a large bonus from work.
They use the “windfall” cash to reduce their home mortgage and have the mortgage “recast”.
How Does Mortgage Recasting Work?
The specifics can vary by lender, but here are the steps you can expect:
Make a payment. You’ll need to make a large lump-sum payment to a lender – at least $5,000. But check on the minimum amount with your lender. The money goes toward your loan’s principal balance and reduces the amount you owe.
The lender re-amortizes the balance over the remaining term of the loan.
Most lenders charge a servicing fee for loan recasting. But the good news it is not a lot of money.
Again, recasting only lowers the amount you pay each month, it doesn’t reduce your mortgage term.
Here are some details…..
How Do I Qualify For Mortgage Recasting?
Not all lenders offer mortgage recasting and not all types of mortgages are eligible
You can’t recast an FHA, USDA or VA loan under the current government rules. Most jumbo loans are also excluded from recasting.
You’ll need to refinance your loan if you’re looking to change the terms of these types of mortgages.
Keep in mind that individual standards can vary by lender, so it’s best to check to see what you can qualify for.
Considering A Home In Tucson, AZ?
Are you thinking of buying a home in the greater Tucson area? Finding the right home can be a challenging process. But we can make the process much less stressful for you.
We have been Tucson Realtors since 2002. We know Tucson and the Tucson Real Estate market. As a top Realtor duo, we invest the time to understand your home buying interests and desires.
At our first meeting, we will review the current real estate market with you. Show you the market data and then walk you through the Arizona home buying process.
Why? We want you to know what to expect. And what to plan for.
Interested in new construction? We’ll brief you on buying a new construction home. And what’s unique about the process.
For us, you are not another real estate transaction. You are a client and, future friend. We strive to create a relationship that continues long after you move into your home. Review our profiles. Check out our backgrounds, education, and certifications.
We are here to help you “know what you need to know” to buy a home in Tucson, AZ. We provide you information on Tucson events, places to shop and restaurants. Our resources include contractors, electricians, and home services.
But most important, our professional service backgrounds mean we put you first!
Thinking About Selling Your Home In The Greater Tucson Area?
Selling a home requires more than listing it in the Tucson MLS system. It’s about marketing. Marketing through multiple online channels.
To no one’s surprise, 80% of home buyers start their search on the internet. Homes must be visible on multiple internet channels. The more visible a home is, the faster it will sell.
And the photos on the mls make a difference. You can spend lots of money on home staging, but if the photos aren’t great it doesn’t matter. Staging and stunning photos make it all come together.
We use multiple online marketing channels to showcase your home. We will build a stand-alone website built to show your home. Our marketing program targets key cities in the U. S. based on the season.
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To learn more about how we can help you sell your Tucson home, call us – 520-940-4541 – to arrange a meeting. We will visit your home and prepare a comparative market analysis.
Then we will meet with you to review our analysis. We will go over our Comparative Market Analysis for your home in detail. And the review our marketing program to “get your home sold!”
Thank you for visiting www.premiertucsonhomes.com! It’s one of the top real estate websites in Tucson. Our clients tell us that.
Our website provides information on communities and neighborhoods in the greater Tucson area. Want more? Give us a call – 520-940-4541. We are ready to answer your questions and help you get the information you are looking for.
We are a top Realtor duo in Tucson, AZ since 2002. Read our client testimonials. Give us a call. We look forward to making your home buying or selling experience enjoyable YOU!
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