Tried to get one today and was reminded I had to wait 2 months until I'd be allowed since this is a new loan.
A Re-cast is when you make a large lump sum payment and the bank (for $250) "re-cast" your mortgage, thereby providing you with a lower payment.
I stand to knock off around $650-700 off my payment doing it this way, instead of a regular refinance.
It doesn't make that much of a difference unless you're making a giant lump sum. For example, anything under 50K, I personally wouldn't bother with because I doubt you'd see that much of a decrease in your bill.
Either way, it's something that'll help me out down the road when the new twins come along. I just have to wait a little longer to do it.
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