What is Recasting a Mortgage?

It is an important topic in today’s market. 

Basically recasting is when a client has a chunk of money (perhaps from the sale of their current home) and wants to apply it to the balance of their current mortgage AND have that application of money change (or recast) their monthly payment.

Example:  Mr. and Mrs. Purchaser buy a home not contingent upon selling their current home (are able to qualify with both homes).   They have a $180,000 new mortgage; they sold their current home and have net proceeds of $30,000.    They can take that $30,000 and apply it to their $180,000 mortgage; now they will have monthly payments based on a $150,000 mortgage balance.   (no refinance required).  They have “recasted” their mortgage.

Bottom line… another great reason to refer your clients to John Adams !  

Some restrictions apply, as with any lender who allows recasting, i.e. a minimum of $5000.

 

Rose Balhorn

Mortgage Loan Originator, NMLS 140060

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Staunton Financial Inc.,  d.b.a. John Adams Mortgage
31 S Main, Clarkston, MI 48346
rbalhorn@johnadamsmortgage.com
Office: 248-625-7065      Cell:  248-789-4747     EFax: 248-394-3425

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