Unlocking Lower Mortgage Payments: The Power of Mortgage Recasting

When it comes to reducing your monthly mortgage payments, there’s no shortage of options. Refinancing, a popular choice, allows you to lower your interest rate, extend the mortgage term, or eliminate mortgage insurance. However, refinancing often involves fees and can be a complex process. Another common approach involves having your home’s taxes reassessed, which has been prevalent as property values fluctuate. Similarly, some homeowners wait for around five years, hoping to accumulate the 20% equity needed to eliminate mortgage insurance if your mortgage carries it.Open notepad with mortgage recast handwritten inscription.

The challenge with these methods is that they rely on external factors, such as property value, credit, income status, and prevailing interest rates. They are contingent on elements beyond your current mortgage or your control. This is where the concept of mortgage recasting comes into play.

Mortgage recasting is a simple yet powerful strategy. It entails your lender re-amortizing your loan over the remaining repayment period at the existing interest rate, based on the current outstanding balance. In essence, it recalculates your mortgage payment solely based on the mortgage balance itself.

This method can be exceptionally beneficial if you’ve recently made a substantial principal payment or plan to do so soon. The more you allocate towards your mortgage early on, the lower your revised payments become. Many clients have employed this strategy after receiving a sizable tax refund, a large bonus from their employer, or an inheritance.  Additionally, recasting remains a popular choice for those looking to purchase a new home before selling their current one. Assuming you qualify for the new mortgage, along with the old mortgage, once the old home is sold, using the proceeds from that sale, and applying them to the current mortgage balance.

If you have queries about mortgage recasting or wish to explore how it compares to refinancing, please don’t hesitate to contact me.


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Ross Mortgage Corporation


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Marc Edelstein - Ross Mortgage Corporation
7151 N Main
Clarkston, MI 48346

(248) 658-2643