Don't Refinance in 2024, Recast Your Mortgage Instead! 1/10th the cost
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- Опубліковано 25 лис 2023
- #finance #mortgage #homeownership
In this video I explain why refinancing in a high interest rate environment is unlikely to make financial sense for homeowners. Instead, exploring the much easier and much lower cost option of mortgage recasting is going to be a smarter financial lever to pull. - Розваги
wow, i have never heard of recasting. I will call my mtg company today. Thank you!
That’s because they make 10x as much off the home owner on a refi 🙂
Fl LSA here. I found this very insightful. Thank you.
Thanks so much!
Great information. Thank you!!
I heard that some lenders allow free recasting.
Some definitely do!
Is there an equity requirement for recasting?
Good question! No there is not! Keep in mind different lenders have different requirements but I have never heard of meeting an equity level to recast or even to refi. An LTV requirement is usually only true for removal of PMI on a mortgage.
I recast my loan twice, and my monthly mortgage is 176.41. It was only 300.00 to recast. I keep making the same mortgage payment with most of it extra to the principal.
Wow! Great job!
I bought a house 2 years ago, with the intent of recasting because the market was so crazy then and knew i wouldn’t get a contingent offer accepted (i had $250k in equity in my old condo). My lender only charges $250 to recast 👍
Nice! That's a great price!
Recasting fee is low but there's also the lump sum. So its at least $10,500.00.
Recasting your interest rates stay the same.
Sure but that $10,000 goes to pay down your loan. Refinancing doesn’t come with that option.
what if you want to pay off debt and improve the home. can you get some money from recasting to do it?
@@kevinjohnson5731the recast lowers your monthly payment so its easier to save money for your home improvements. I love the recast.
If I bought 5 years ago with a 30 year fixed. When I recast does my term length reset to 30 years?
Nope! You keep the same term, the reamortization schedule will reflect 25 years in your case.
Wait a minute, you have to pay for re-amortizing? They don't charge a fee for that in the case of a student loan.
I am curious if all mortgage companies charge a fee ?
I’ve not heard of a mortgage servicer offering it for free to customers, it’s definitely possible but unlikely. If you choose to recast, expect to pay around $300 for it.
I bought last year and my rate was 7.2%. I’m waiting for the end of first quarter for the rates to drop alittle more. I feel like it would make more sense for me to refi then recast. If you have any input please give me some insight. Thank you.
It comes down to the math on each deal, cutting your rate by 2% or more may be worth the refi, depends what your monthly payment is. If you don't have a lump sum to throw at the principal then recasting won't be an option as the minimum is usually $10,000 (set by the mortgage servicer). Keep in mind refis are expensive so you don't want to have to do it multiple times if rates continue to drop.
My husband died in 2020. I found out that he had an IRS lien that he was paying an installment plan on. I finished paying that and lien is off our home. Problem is- the mortgage rate on my home is 8.875%. I have 9.9 yrs and $125k balance. Should I refinance now? Fees run between $2k and $5k or more. Better to pay extra and not refinance? I’m so lost. I know nothing about finances!
Sorry to hear that, great job paying off the lien. That interest rate is quite high, granted the balance is small. It might not make sense to refi given rates are only 1-2% better. I recommend contacting your mortgage servicer to see what options may exist to lower your monthly payment.
How much money will I save on a mortgage recast?
It depends on a number of financial inputs, here is a calculator and you can find out your savings: amortizationschedule.org/recast
@@taylor.g.deloyethanks
How often I can recast? Because I read, it is only allowed once over the live of the loan
There is no limit, if a lender has a limit, they are likely a very bad lender.
Thank you very much@@taylor.g.deloye
This video says, it's allowed only once over the life of the loan on conventional loan@@taylor.g.deloye
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I am so torn… I have $50K that I want to put toward my $300K mortgage loan. I am not sure if I sure use the $50K to recast or if I should just put the $50K toward the principal….
Recasting that 50k would go 100% to principal. You can make an extra payment of 50k for free but it will not change your monthly payment amount. Recasting will cost a few hundred bucks but the 50k will be applied to principal and lower your monthly payment amount. Hope that helps!
You are wasting time .Just explain recadting ...
Patience grasshopper 🙂
This sounds terrible
Which part?
@taylor.g.deloye to recast a loan. Just pay extra to the principal, and it will cost you nothing.
What if you have an FHA loan?
@@edward3601Yeah but if you “just pay extra to the principal” your monthly payment will still be the same. You would pay off the loan faster because you are paying the same payment on a laower principal. The point of recasting is to lower the principal and have the new lower principal reflected in your monthly payment being lower.
Basically what you are saying would help a person pay off their mortgage faster while what the video refers to is for people who want to lower their monthly payment. 2 Different goals