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What Is A Mortgage Recast?
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How Does Recasting A Mortgage Work?
View refinance options that have been recommended by experts and adjust them to suit your budget.
Should I Recast Or Refinance My Mortgage?
View refinance options that have been recommended by experts and adjust them to suit your budget.
Victoria Araj has worked for Rocket Mortgage for 15 years as a section editor. During that time, she has also held positions in mortgage banking, public relations, and other areas. She graduated from Michigan State University with a bachelor’s degree in journalism with a political science focus and the University of Michigan with a master’s degree in public administration.
FAQ
Is it better to pay down principal or recast?
Paying down the principal requires less money up front than recasting, and you can make additional monthly payments even though your minimum payment stays higher. Recasting is preferable if you wish to have smaller ongoing repayments but have a financial windfall or sizable cash reserves.
Can you restructure a VA loan?
If you currently have a mortgage backed by the VA and would like to lower your monthly payments—or stabilize your payments—an interest rate reduction refinance loan (IRRRL) might be the best option for you. By refinancing, you can get a new loan with different terms to replace your existing one.
Are there downsides to recasting mortgage?
Recasting is not a good idea if the interest rate is very high. Additionally, because contributed funds are invested in the home equity, the mortgage recast decreases overall liquidity. If borrowers need the money, they might have to sell their houses or take out home equity financing.
Do all lenders allow recasting?
Not every kind of mortgage can be recast in the conventional sense. An FHA, USDA, or VA loan cannot normally be recast, though your lender may use this option to modify your loan if you are having trouble making payments.
Read More :
Is there something similar to loan recasting for the VA loan?
byu/McStizly inMilitaryFinance