09/21/2026
🏡 WAIT… YOU CAN LOWER YOUR MORTGAGE PAYMENT WITHOUT REFINANCING?
Potentially- through a mortgage recast.
A recast can be a powerful strategy that a lot of homeowners and buyers simply don’t know exists.
Here’s the basic idea:
You make a substantial payment toward your principal balance, and if your loan is eligible, your servicer recalculates your monthly principal & interest payment based on the new lower balance.
The important part? 👇
✔️ You generally keep your existing interest rate
✔️ You keep your existing mortgage- no new loan
✔️ Your principal balance drops
✔️ Your monthly principal & interest payment may drop
✔️ Unlike refinancing, you’re not replacing the mortgage with an entirely new loan
Where can this strategy really come into play?
Maybe you buy your next home before your current home sells. Instead of waiting to purchase, you may be able to close on the new home, sell the departing residence afterward, apply a portion of those proceeds to the new mortgage, and then explore whether a recast makes sense.
It can also be worth discussing after a large bonus, inheritance, asset sale, or anytime you’re considering putting a significant lump sum toward your mortgage.
⚠️ Important: Not every mortgage is eligible for recasting. Minimum principal reductions, fees, timing and eligibility vary by loan program, investor and servicer. A recast generally changes the principal & interest portion of the payments- property taxes, homeowners insurance and other applicable charges aren’t reduced simply because the loan is recast.
There’s more to mortgage planning than finding a rate. It’s about structuring today’s financing around tomorrow’s plans.
📲 Roni Fraser | Mortgage Broker | Owner
970-456-8346
[email protected]
www.fraser-mtg.com
NMLS #1068205 | Company NMLS #2571114
Bright Hat. Brighter Mortgage Solutions. 💚
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