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A Little-Known Strategy For Reducing Mortgage Payments

Sunday, January 2, 2011 - 11:09 AM
With deposit rates so low, it may be better to use extra savings to pay off a lump sum of your mortgage principal. This is described in this New York Times article:
A little-known strategy, called “recasting,” or “re-amortization,” is available through some mortgage lenders and servicers.

It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms.

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Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,664
1. Sunday, January 2, 2011 - 1:12 PM
Thanks, lenders usually charged a fee (say $150) and there is usually a minimum requirement (say $5,000 or more). 
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51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
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