Is mortgage recasting right for you? Is recasting something you should even consider? To recast a mortgage means to make a lump sum payment to the overall balance of the loan in question. The purpose, or benefit, is that you will have lower monthly payments but with the same interest rate. One of our owners, Paul, explains in the video below.
Paul Apostolakis 0:00
What’s up everyone, Paul Apostolakis here with your Omega 60. Today we’re talking about recasting and what that means to you. So a lot of you are looking to potentially move out of your home but don’t want to sell your house or have to find another house while doing that. One thing that you can do and something that you can take advantage of is: you can keep your home as long as you can qualify for the new house. With 5% down, you can go ahead and get into that home and then whenever you do sell that house, you can make a lump sum payment to that new mortgage and drop all your numbers down to the new level of that new mortgage meaning new payment potentially get out of PMI, whatever it may be, that can be done on the back end of the mortgage. So be aware that you can use this tool. Talk to your loan officer about recasting if you’re living in a house right now, and you’re not sure how to move out of it. Thank you and have a good day.