What Is a Mortgage Recast?

If you’ve ever made a large lump-sum payment toward your mortgage — or thought about doing so — you may have heard the terms “mortgage recast” or “reamortization.”

A recast can be a powerful (and often misunderstood) option for homeowners who want a lower monthly payment without refinancing.

Let’s break down what a recast is, how it works, and when it may (or may not) make sense. [Read more…]