Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400)

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Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

We send folks to our lender for recasts. Great option. Great question. 

Mar 13, 2019 10:09 PM
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Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525
Mar 13, 2019 06:00 PM
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Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Depends on the promissory note. Problem: most lenders don't service their notes- there are 3 main companies in America that service and they will stall until the cows come home. IF credit union orginated and serviced the note and even if they already did a pay down, the credit union could at their own mercy recast the loan payments. IF the credit union sold the loan, find out who the trustee or owner is and ask them in a letter.  Why do they want this? To avoid making principle payments? My suggestion BEFORE they got this note would be to look at a OFFSET mortgage where interest is collected daily on the daily balance - would be easier and cheaper

Mar 13, 2019 04:59 PM
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

I had an inhouse loan from a bank and recast it about three times from 18.9 down to 9.9. I paid for the recast and saved the cost within 3 months each time.

Mar 13, 2019 04:18 PM
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Interesting, Nick! I thought the limitation was the time-frame. Most of our lenders here who allow it, have a 6-month time limit; after 6-months, refinancing is their only option.

More than one re-cast in 6 months wouldn't make sense.

Mar 13, 2019 04:17 PM
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Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

I haven’t heard or dealt with recasting since the 1980’s, and even then, we only saw it once in a blue moon. If you have extra money and are thinking about recasting, look at all your options before deciding. Paying off charge cards, investing into mutual funds, or saving it for emergencies, opening an IRA, could all be better choices. Contact a trusted financial advisor before you make that decision

Mar 14, 2019 06:21 AM
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi NIck... an interesting question. I'll ask my lenders. I haven't found that most people recast more than once and many don't even know this is an option. Lots of credit unions do not allow recasting.,, I know that having worked with a number of buyers who financed through their unions and having asked that specific question.

Mar 14, 2019 04:16 AM
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Funny! I have not heard that term in years. I am sure each lender has their own policy. If the lender owns the loan you might get a different answer than if the loan has been sold into the investment world.

Mar 13, 2019 05:31 PM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I've never heard of recasting a loan before.  Refinancing yes, recasting no.

Mar 13, 2019 05:05 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I may learn something new here.

Mar 13, 2019 03:41 PM
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Richard Weeks
Dallas, TX
REALTOR®, Broker

Kris Collis has a good answer

Mar 14, 2019 04:41 AM
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Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I'll be looking for answers here and learning.... I don't know that answer....

Mar 14, 2019 04:30 AM
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Rely upon the advice of your trusted local mortgage loan officer.

Mar 13, 2019 04:05 PM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Parked and Reading.

Mar 15, 2019 09:59 AM
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Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

I'm not qualified to answer Nick Vandekar, 610-203-4543 but I know that Banks, Credit Unions, and Mortgage Brokers all have different Federal regulations which may account for your client getting different answers.

Mar 14, 2019 07:22 AM
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I am looking forward to hearing the answer. 

Mar 13, 2019 03:36 PM
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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Great question.

 

Mar 17, 2019 11:18 AM
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

/great question

Mar 16, 2019 06:22 PM
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Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, VA, GA and FL.

As far as I know a recast is when the lender recalculates your principal and interest payment based on your current balance and number of months remaining in your loan term. 

Say you bought a new home before selling your old home. New home was $500,000 and you put down 20% so you have a $400,000 loan and 30-year term. You sell the old home and net $200,000 and want to pay down your the loan on your new home. The lender will gladly take your money, but they won't lower your payment. Instead, you will just pay it off sooner, much sooner. But if you give them the $200,000 and ask them to recast your loan the term will remain the same but your payment will go down.

How often will the lender do this? Not sure but I can tell you that they most likely have a minimum amount you have to give them before they will consider it.

 

Mar 14, 2019 04:52 PM