Recasting, or otherwise known as “re-amortization”, is a feature offered on many of Bluefire Mortgage Group’s loan products. So what exactly is recasting?
Recasting is when you make a large lump sum payment toward your principal balance and then have the payments reset according to the new loan balance based on the original interest rate and loan terms. This is a simple way of getting the benefit of refinancing, such as a lower payment, without having to go through the refinance process.
Recasting is a great feature because it allows a borrower to lower their monthly payment without having to refinance their mortgage. By not having to refinance the mortgage, a borrower doesn’t have to restart the amortization on the loan and does not have to worry about losing their current interest rate. This allows a borrower to save on their interest expenses and also save on their monthly cash flow without having to spend the time and money on a full blown refinance.
If you would like the option of having a recasting option, we recommend that you ask us if you qualify for a loan that allows recasting. Give us a call at (760) 930-0569 to see how you can take advantage of a mortgage loan with a recasting option.