Most homeowners default to refinancing when their loan starts feeling heavy. It’s the obvious move. But sometimes the cheaper, cleaner play is a recast (and most people have never heard of it).
A recast keeps your existing rate. You drop a chunk of principal, the lender re-amortizes the loan over the remaining term, and your monthly payment goes down. No closing costs in the four-figures range. No reset of the amortization clock.
Two scenarios where a recast wins: you got a windfall and your current rate is already lower than today’s, or you’re in the back half of the loan and don’t want to restart the interest curve.
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