What Borrowers Need To Know About Loan Recasts

What Borrowers Need To Know About Loan Recasts. Recast your loan!!!

What Borrowers Need To Know About Loan Recasts video duration 12 Minute(s) 56 Second(s), published by The Mortgage Brothers Team on 29 05 2019 - 16:12:43.

Recasting a loan: Great strategy to delay large principal reduction and reduce mortgage payment I) What is a Re-Cast? a
The borrower has the option to make a Have you received a lump sum of money (e.g
bonus, commission, successful Foxwoods trip)? Before you book a vacation, you may want to consider applying .

Have you received a lump sum of money (e.g
bonus, commission, successful Foxwoods trip)? Before you book a vacation, you may want to consider applying . Did you know that you may be able to lower your monthly payment and NOT refinance your loan??? It's TRUE! After a Principal Reduction you can enjoy a lower .

Recasting a loan: Great strategy to delay large principal reduction and reduce mortgage payment
I) What is a Re-Cast?
a. The borrower has the option to make a large principal reduction at nearly any point in the life of the loan and request a “Recasting” of the loan. What that means: Recasting is the result of a one time “paying down” of the principal and then re-amortizing the loan so the payment actually goes down. Terms of loan stay the same (Int %, fixed term, etc. except PMI could drop) but payment goes down!
i. Its like going in a Time Machine back to when we did the loan and you putting a larger down-payment down which lowers your monthly payment
II) Who would ever do a thing like this (who ALL OF SUDDEN HAS LOTS OF MONEY)
a. People Not wanting to sell current primary until AFTER buying new primary
b. People receiving an unexpected large bonus from work!!
c. People maybe receiving an unexpected inheritance
III) Every loan can be a tiny bit different but to Recast you need to do the following:
IV) To recast:
a. The borrower must have made at least their 2 payments
b. The principal reduction must be at least for $10,000. Higher reductions are fine.
d. Fees to recast range from $100 to 350 in most cases
e. Recast only available on Conventional loans, not FHA or VA
V) WHAT’s NEXT - Ok, you’ve sold your old primary home, or got that BIG juicy bonus from work – now what??
a. The borrower generally sends three things to servicer: i) a request for recasting in writing. ii) the check in the amount of the requested principal reduction. iii) a check for the Recast fee. Once received, they will process the request and within 30 to 45 days, the recasting will be completed and the loan modification documents sent to borrower. The modification letter details the new reduced monthly payment.