What does it mean to “Recast” your Mortgage?

by Brad Gellman

What does it mean to “Recast” your Mortgage?

A mortgage recast is when you make a lump-sum payment toward the principal balance of your loan so you can lower your monthly payment

I hope everyone had a wonderful March and getting excited for the spring! Now that we are emerging from our hibernation, things are getting very busy. I have recently put multiple properties on the market and have had multiple buyers go under contract. Interest rates are still around the same, but it’s still a good time to buy in Philadelphia and sell in the suburbs. As you may have heard, there are a lot of changes coming to the real estate business including how real estate agents will be paid. As of right now, nothing has changed and it will be business as usual for at least the next couple months. Once more decisions have been made, I will gladly share that information with you. If you have any questions about the lawsuit, or want to discuss anything, do not hesitate to reach out.

What is a Recast?

A general misconception is that a recast is the same as a Refinance. What it means to “recast” a mortgage is to make a large principal payment and have the mortgage payment re-amortized over the life of the mortgage based on the new principal balance – thus resulting in a lower principal and interest payment. Not all mortgage servicers allow recasting, so it is important to ask your Loan Originator if they retain the servicing or sell it after closing.

This is a great way to lower your monthly payments AND lower the total amount you will pay over the life of the loan! Is this something you’d like to know more about, please reach out and I can put you in touch with some of the best lenders out there who will walk you through this process.

The Phillies Season Starts March 28th!

We are less than 2 weeks from the start of the Phillies 2024 world series run! I sent out a Phillies season schedule magnet, but if you haven’t gotten one and want one, fill out this link and I’ll mail you one asap.

Also, I am going to be raffling off free tickets to the Phillies game on May 21 with a full tailgate before. This has been a great event the previous years, and I’m excited to bring more people with me this year! If you’d like to go, please fill out this form and I’ll put you on the list. There are no requirements except that you have to be 21+ (you can bring a kid) and you can only enter once. I have limited tickets but will try to give out as many as I can. It will be 2 tickets per person who wins, but both you and your 21+ partner can enter separately. I look forward to seeing you there! I’ll be announcing the winners in the first week of May.

This past month, we have been laying low in the cold winter weather, but we still got out a bit to explore. Recently, my family and I went to the Franklin Institute to see the Art of the Brick. The exhibit was amazingly creative and interactive - worth checking out for any age. I also bought my first new bicycle in almost 10 years. With the help of one of my clients who owns a bike shop, I purchased an amazing road bike that I can’t wait to use for the American Cancer Society Bridge to Shore ride on June 2. If you are thinking of doing this, I would love you to join! It is a great opportunity to raise money for an important organization. If you’d like to donate to help me surpass my goal, reach out and I can send you the link. Have a wonderful start to the spring and I’ll see you all next month!