Mortgage Tip: Update on Recasting

Can You Recast A Jumbo Loan?

If you’re a homeowner with a jumbo loan, you may be wondering if you can recast your loan. The answer is yes, it is possible to recast a jumbo loan. This process can help reduce your monthly payments, lower your interest rate, and take some of the financial strain off of your shoulders.

A jumbo loan is a mortgage loan that is for a higher amount than conventional loan limits. These loans typically have higher interest rates than other types of mortgages, and they can be difficult to qualify for. But if you have a jumbo loan and need some financial relief, recasting may be an option.

Recasting is when you pay a lump sum of money toward your loan balance. This payment is then used to lower your monthly payments, without having to refinance your loan. It can be a great way to reduce your interest rate, without having to go through the lengthy and complicated process of refinancing.

To recast a jumbo loan, you will need to pay a lump sum of at least five percent of your original loan balance. This payment will be used to reduce your loan balance and your monthly payments. You will need to contact your lender to start the process, as they will need to approve the recasting and make the necessary adjustments to your loan.

Recasting a jumbo loan is a great way to reduce your monthly payments and interest rate, without the hassle and expense of refinancing. It can be a great option for those with a jumbo loan who are looking for financial relief.

Key Points:

• A jumbo loan is a mortgage loan for a higher amount than conventional loan limits.
• Recasting is when you pay a lump sum of money toward your loan balance.
• You need to pay at least five percent of your original loan balance to recast a jumbo loan.
• You will need to contact your lender to start the process.

People Also Ask Questions:

Q: What is a jumbo loan?
A: A jumbo loan is a mortgage loan that is for a higher amount than conventional loan limits.

Q: How do you recast a jumbo loan?
A: To recast a jumbo loan, you will need to pay a lump sum of at least five percent of your original loan balance. You will need to contact your lender to start the process.

Q: What are the benefits of recasting a jumbo loan?
A: Recasting a jumbo loan can help reduce your monthly payments, lower your interest rate, and take some of the financial strain off of your shoulders.

Can You Recast A Jumbo Loan – Highest Rated?

We mentioned recasting a few times on our weekly mortgage tip. If you don’t know what recasting is, please watch this video for a recap on what it is. There has also been an exciting update that will benefit another group of clients. Please remember that recasting is not available on VA or FHA loans.

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