#TipTuesday – What is a Recast on a Mortgage?

Can You Recast a Jumbo Loan?

If you have a jumbo loan, you may be wondering if you can recast it. In short, the answer is yes, you can recast a jumbo loan. Recasting a jumbo loan can help you lower your monthly payments, reduce your interest rate, or both. It is important to understand the process of recasting before you make a decision to do so.

What Is Recasting?

Recasting is a process that allows homeowners to pay down their loan balance in a lump sum, or a series of lump sums, in exchange for a lower monthly payment. It is sometimes referred to as a “recast” or “loan modification.” Recasting does not involve a refinance or a loan modification, as it does not change the terms of the loan.

How Does Recasting a Jumbo Loan Work?

When recasting a jumbo loan, the homeowner pays off a portion of the principal balance. The lender then recalculates the loan at the current interest rate and amortization schedule. The new loan payment will be based on the new principal balance and the current interest rate.

What Are the Benefits of Recasting a Jumbo Loan?

The main benefit of recasting a jumbo loan is that it can lower your monthly payments. This can be especially beneficial if your interest rate is high. Another benefit is that recasting can reduce the amount of interest you pay over the life of the loan.

Are There Any Drawbacks to Recasting a Jumbo Loan?

One of the drawbacks of recasting a jumbo loan is that the amount you pay upfront can be significant. You may also be subject to certain fees associated with the process. It is important to weigh the pros and cons of recasting before you make a decision.

Key Points:
• Recasting is a process that allows homeowners to pay down their loan balance in exchange for a lower monthly payment.
• When recasting a jumbo loan, the homeowner pays off a portion of the principal balance.
• The main benefit of recasting a jumbo loan is that it can lower your monthly payments.
• One of the drawbacks of recasting a jumbo loan is that the amount you pay upfront can be significant.

People Also Ask:
Q: What is the process of recasting a jumbo loan?
A: When recasting a jumbo loan, the homeowner pays off a portion of the principal balance. The lender then recalculates the loan at the current interest rate and amortization schedule.

Q: What are the benefits of recasting a jumbo loan?
A: The main benefit of recasting a jumbo loan is that it can lower your monthly payments. It can also reduce the amount of interest you pay over the life of the loan.

Q: Are there any drawbacks to recasting a jumbo loan?
A: One of the drawbacks of recasting a jumbo loan is that the amount you pay upfront can be significant. You may also be subject to certain fees associated with the process.

Can You Recast A Jumbo Loan – Highest Rated?

While many homeowners opt to refinance their home mortgage, a loan recast may be a better option. Learn what mortgage recasting entails. Watch today’s #TipTuesday and find out!
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Hi I am Giuseppe Battaglioli from My Denver Home Loan. I am truly passionate about my profession, and the result is that nearly 100% of my business is by referral from satisfied clients, trusted financial advisors, and the most experienced Realtors in the Denver area.

My mission is to carefully guide you through the entire home loan process, so that you feel confident about your financing strategy. We specialize in Conventional, FHA,VA, and Jumbo financing, so we can meet your needs!

I understand that it’s not just a house, it’s your home! You only think about home financing a few times during your life ~ I think about it every single day. It’s your home and your future. It’s my profession and my passion. I’m ready to work for your best interest.

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