[Sasha]

Has anyone had success reamortizing their mortgage loan to lower monthly payments?

Just spent an hour trying to reach someone through my lender that understands this process and everyone was confused as to how to use my current equity to lower my payment without doing a refinance (which would not lower my payment lol).

[Adam]

Not all lenders allow for a recast, but that’s the term you should ask for when you call.

Did you pay a lot extra toward your principal?

[Katie]

I only personally know of one family that did a recast and it was through a credit union, and not a VA loan.

[Eric]

What’s your rate on the va loan? There used to be a streamline refi if rates are lower now than when you bought last.

Used to be very minimal cost.

[Tonya]

Freddie Mac charges a $250 fee to recast but it is allowed. Do you have a conventional loan?

[Christopher]

Like other have said, you’re looking to “recast” the loan. This isn’t always available and sometimes requires a sizable payment along side to justify it (already being ahead doesn’t always count toward the recast).

[Paul]

It’s called a recast and usually requires a large principal payment and the loan can’t be FHA or VA.

[Nicole]

You need to make a large payment to the principal for a recast. You can’t use equity for that which is why no one knows what you’re talking about.

[Danny]

Have you made a large principal reduction payment? You don’t use equity from appreciation to do a recast.

Most servicers charge a small fee and it’s fairly straightforward.

[Adam]

You don’t get to use value appreciation to lower payment. If they did that, then they could also hire your payment if value went down.

If you made a large extra principal payment, some lenders may re-amortize.

[Author]

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