Recast Mortgage: What Is It & How Do You Calculate It?

Abstract

A recast mortgage is a process of reevaluating monthly mortgage payments by taking the loan’s balance and dividing it by the remaining months left on the mortgage term. To recast a mortgage, homeowners will first need to meet with their lender to discuss whether or not a recast is possible. Many lenders require a minimum lump-sum payment of at least $5,000. Most jumbo loans don’t qualify to be recast. Most Jumbo Loans don”t qualify. Other lenders will require the payment to represent a percentage of the remaining principal. For more information, you will need to get a better idea. To calculate the terms, you would need to use the mortgage recast calculators. A great deal of lenders will need a good history of timely payments. A good deal of lender will require a clean history of late payments. The recast process is a good tool for many lenders.