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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.

Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
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). 
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426