Mortgage Recast vs. Refinance: Which Is Better?

Mortgage Recast vs. Refinance: Which Is Better?

A mortgage recast and a mortgage refinance can both reduce your required monthly payment.

But they accomplish that goal in very different ways.

A mortgage recast keeps your existing loan and recalculates the payment after a substantial principal reduction.

A refinance pays off the existing mortgage and replaces it with an entirely new loan.

The right choice may depend on:

• Your existing interest rate.
• Current mortgage rates.
• Amount of cash available.
• Remaining mortgage balance.
• Remaining loan term.
• Desired monthly payment.
• Refinance closing costs.
• Current credit and income.
• Mortgage-insurance status.
• Whether a borrower must be added or removed.
• Whether you need cash from your equity.
• How long you expect to keep the home.

When the existing mortgage has a favorable rate, a recast can preserve that rate while lowering the required payment.

When the existing rate is unfavorable or the loan structure needs to change, refinancing may provide more flexibility.

This mortgage recast vs. refinance guide explains how both strategies work and how to determine which one better supports your financial goals.

What Is a Mortgage Recast?

A mortgage recast occurs when a homeowner makes a substantial principal payment and the mortgage servicer recalculates the required payment using the lower remaining balance.

The existing loan remains in place.

A recast generally does not change:

• The interest rate.
• The loan program.
• The original maturity date.
• The borrowers obligated on the mortgage.
• The property securing the loan.
• The basic contractual terms.

The servicer spreads the reduced principal balance across the remaining repayment period using the existing interest rate.

The result is a lower required principal-and-interest payment.

A mortgage recast may also be called:

• Loan recasting.
• Mortgage re-amortization.
• Loan re-amortization.
• Payment recalculation after principal curtailment.

Under current Fannie Mae servicing guidance, a borrower may request re-amortization after making a substantial principal curtailment. The servicer then documents the new payment while preserving the existing loan’s enforceability and lien position.

What Is a Mortgage Refinance?

A mortgage refinance replaces the existing loan with a new mortgage.

The new loan pays off the old mortgage and establishes new terms.

A refinance may change:

• Interest rate.
• Loan term.
• Loan program.
• Monthly payment.
• Mortgage balance.
• Fixed or adjustable rate.
• Mortgage-insurance structure.
• Borrowers obligated on the loan.
• Cash available from the property’s equity.

Because it is a new mortgage, refinancing normally requires:

• A new loan application.
• Credit review.
• Income verification.
• Asset documentation.
• Debt-to-income analysis.
• Title work.
• Homeowners-insurance review.
• Property valuation or appraisal.
• Underwriting.
• Closing documents.
• Closing costs.

Related resource: Rate-and-Term Refinance Guide.

The Primary Difference Between a Recast and Refinance

A recast modifies the payment calculation on the existing mortgage.

A refinance creates an entirely new mortgage.

That distinction affects almost everything else.

With a recast:

• The existing rate remains.
• The original maturity date remains.
• A lump-sum principal payment is generally required.
• Closing costs are usually minimal.
• Full mortgage underwriting is generally not required.
• The borrower continues with the current servicer and loan.

With a refinance:

• The rate may change.
• The term may change.
• A lump-sum payment is not necessarily required.
• Normal mortgage closing costs apply.
• The borrower must generally qualify again.
• The existing mortgage is paid off.
• A new lender or servicer may become involved.

How a Mortgage Recast Works

A typical mortgage recast follows these steps:

• The homeowner contacts the mortgage servicer.
• The servicer confirms whether the loan is eligible.
• The homeowner makes the required principal payment.
• The servicer applies the money as a principal curtailment.
• The homeowner requests re-amortization.
• The servicer calculates a new payment.
• Any required recast agreement is completed.
• The new principal-and-interest payment takes effect.

The exact process, minimum principal payment, fee, and timing depend on the mortgage owner and servicer.

A homeowner should obtain written instructions before sending a large payment.

Sending a principal payment does not automatically guarantee that the mortgage will be recast.

Mortgage Recast Example

Assume a homeowner has:

• Remaining mortgage balance: $400,000
• Interest rate: 4.00%
• Remaining term: 25 years
• Current principal-and-interest payment: approximately $2,111
• Lump-sum principal payment: $100,000
• New balance after payment: $300,000

If the servicer approves a recast, the new $300,000 balance is recalculated over the remaining 25 years at the existing 4.00% rate.

The new principal-and-interest payment would be approximately $1,583.

The required payment decreases by approximately $528 per month.

The interest rate and remaining maturity date do not change.

This example is illustrative. Actual payment calculations depend on the precise balance, rate, remaining term, and servicer procedures.

What Happens If You Make a Lump-Sum Payment Without Recasting?

A principal payment and a recast are two separate actions.

If you make a large principal payment without recasting:

• The mortgage balance decreases.
• Future interest is calculated using the lower balance.
• The required monthly payment generally remains unchanged.
• More of each future payment goes toward principal.
• The mortgage may be paid off earlier.
• Total interest may be reduced.

If you make the same principal payment and then recast:

• The mortgage balance decreases.
• The required payment decreases.
• The original maturity date generally remains.
• The lower balance is spread over the remaining term.

A homeowner focused on paying the mortgage off as quickly as possible may prefer making the principal payment without lowering the required payment.

A homeowner focused on monthly cash flow may prefer completing the recast.

Does a Mortgage Recast Lower the Interest Rate?

No.

A mortgage recast does not normally change the interest rate.

If the existing mortgage rate is 4.00%, the recast generally continues using 4.00%.

This is one reason recasting can be attractive when current mortgage rates are higher than the homeowner’s existing rate.

The homeowner may reduce the required payment without giving up favorable existing financing.

If current market rates are substantially lower, refinancing may create more savings by reducing both the rate and payment.

Related resource: Mortgage Interest Rates Explained.

Does a Recast Change the Loan Term?

A recast generally keeps the existing maturity date.

If the mortgage has 22 years remaining, the reduced balance is typically recalculated over those remaining 22 years.

The recast does not normally restart the mortgage with a new 30-year term.

A refinance can establish a different term, such as:

• 30 years.
• 25 years.
• 20 years.
• 15 years.
• 10 years.
• Another term offered by the lender.

Refinancing into a longer term may create a lower payment, but it can extend the debt and increase total interest.

Related resource: Mortgage Amortization Explained.

How Much Money Is Required for a Mortgage Recast?

The required principal payment varies by servicer and investor.

Some servicers may require:

• A minimum dollar amount.
• A minimum percentage of the remaining balance.
• Both a minimum amount and servicing fee.
• The loan to be current.
• Completion of specific forms.
• A waiting period after origination.
• A particular source or reason for the principal payment.

Possible sources of the lump-sum payment include:

• Proceeds from selling another home.
• Annual bonus.
• Inheritance.
• Investment liquidation.
• Business distribution.
• Insurance proceeds when permitted.
• Accumulated savings.
• Sale of another asset.
• Gift funds.
• Divorce-related proceeds.

The servicer should confirm whether any documentation is required.

Related resource: Using Sale Proceeds From Another Home for a Down Payment.

How Much Does a Mortgage Recast Cost?

A mortgage recast usually costs substantially less than a refinance.

The servicer may charge a modest administrative fee, but the amount varies.

A recast generally avoids expenses such as:

• Loan origination fees.
• Discount points.
• Appraisal fees.
• New lender’s title insurance.
• Underwriting fees.
• Recording charges for a new mortgage.
• New escrow-account funding.
• Prepaid interest on a replacement loan.

A refinance can still be worthwhile when its rate or structural benefits exceed these costs.

Related resources: Refinance Closing Costs Explained and Refinance Break-Even Analysis.

Do You Have to Qualify for a Mortgage Recast?

A recast generally does not require the same full underwriting process as a refinance.

The servicer may not need to reverify:

• Employment.
• Income.
• Credit score.
• Assets.
• Debt-to-income ratio.
• Property value.

However, the loan normally must be current and eligible under the investor’s and servicer’s policies.

A homeowner experiencing delinquency, bankruptcy, active loss mitigation, or another servicing complication may not qualify for a standard recast.

By comparison, refinancing usually requires complete mortgage qualification.

Related resources: Mortgage Credit Requirements Explained and Mortgage Employment and Income Guide.

Does a Recast Require an Appraisal?

A traditional mortgage recast generally does not require a new appraisal because the homeowner is not requesting a new mortgage or increasing the loan amount.

The principal balance is being reduced.

A refinance may require:

• A full appraisal.
• A desktop appraisal.
• Property-data collection.
• An automated valuation.
• An appraisal waiver.

The valuation affects the refinance’s loan-to-value ratio, pricing, and mortgage-insurance requirements.

Related resource: Mortgage Appraisal Process Explained.

Which Mortgages Can Be Recast?

Recast availability depends on the investor, mortgage program, and servicer.

Many eligible conventional mortgages may permit recasting after a substantial principal payment.

However, availability is not guaranteed.

Restrictions may apply to:

• FHA loans.
• VA loans.
• USDA loans.
• Jumbo loans.
• Adjustable-rate mortgages.
• Interest-only loans.
• Balloon mortgages.
• Loans in active modification.
• Delinquent mortgages.
• Certain portfolio loans.
• Loans with deferred principal.
• Mortgages subject to other servicing restrictions.

Government-backed mortgages are not generally assumed to have the same standard recast option as conventional loans.

Jumbo and portfolio lenders may offer their own re-amortization procedures.

The borrower must contact the current servicer and ask whether the specific loan is eligible.

Questions to Ask the Mortgage Servicer

Before making a large principal payment, ask:

• Is my mortgage eligible for recasting?
• Who owns or guarantees my mortgage?
• What is the minimum principal payment?
• Is there a recast fee?
• Must the principal payment be made before requesting the recast?
• How should the payment be labeled?
• How long does processing take?
• When will the new payment begin?
• Will I receive a written agreement?
• Does the loan need to be current?
• Is there a minimum time since closing?
• Will the recast affect mortgage insurance?
• Will my escrow payment change?
• Can a loan with deferred principal be recast?
• Can I make additional principal payments afterward?

Do not send a substantial payment until the servicer confirms the correct procedure.

Mortgage Recast After Selling Another Home

One of the most common uses of a mortgage recast occurs when a homeowner buys a new home before selling the previous one.

The buyer may:

• Make a smaller down payment on the new home.
• Complete the purchase before the old home sells.
• Sell the departing residence afterward.
• Apply the sale proceeds to the new mortgage.
• Request a recast to lower the required payment.

This strategy can reduce the pressure to coordinate two closings on the same day.

However, it requires sufficient qualification and liquidity to purchase the new home before receiving the sale proceeds.

Related resources: Buying Before Selling Your Current Home and Using Sale Proceeds From Another Home for a Down Payment.

Recast Example After Selling a Departing Residence

Assume a homeowner buys a new property using:

• Purchase price: $750,000
• Initial down payment: $150,000
• Original mortgage: $600,000

Several months later, the previous home sells and produces $250,000 in net proceeds.

The homeowner applies $250,000 to the new mortgage and requests a recast.

The remaining balance is then re-amortized over the existing loan’s remaining term at the original interest rate.

This may substantially reduce the required payment without obtaining another mortgage.

Can a Recast Remove Mortgage Insurance?

A recast does not automatically remove mortgage insurance.

The principal reduction may lower the loan-to-value ratio enough to support a separate mortgage-insurance cancellation request.

However, mortgage-insurance removal depends on:

• Loan type.
• Original property value.
• Current property value.
• Payment history.
• Investor guidelines.
• Servicer requirements.
• Seasoning.
• Whether a new appraisal or valuation is required.

FHA mortgage insurance generally follows different rules from conventional private mortgage insurance and is not typically removed merely because the loan is recast.

A homeowner with conventional mortgage insurance should ask the servicer to evaluate cancellation separately.

Related resource: Mortgage Insurance Explained.

Can a Recast Remove a Borrower?

No.

A mortgage recast generally does not remove a borrower from the promissory note.

If two borrowers signed the existing mortgage, both normally remain legally obligated after the recast.

Removing a borrower may require:

• Refinancing.
• An approved loan assumption.
• A formal release of liability.
• Another servicer-approved process.

A divorce decree assigning the home to one spouse does not automatically remove the former spouse from the mortgage.

Related resources: Mortgage Approval When a Former Spouse Is Still on the Mortgage and Refinancing a Texas Home After Divorce.

Can a Recast Add a Borrower?

A standard recast does not add a borrower to the mortgage obligation.

Adding someone to title and adding someone to the mortgage are different actions.

A homeowner may sometimes add an eligible person to title without refinancing, but that person does not become obligated on the mortgage merely by receiving ownership.

The existing loan documents, due-on-sale provisions, Texas homestead rights, and title consequences should be reviewed before changing ownership.

Related resources: Being on Title but Not the Mortgage and Vesting on Title: How Homeownership Can Be Structured.

Can a Recast Convert an ARM to a Fixed-Rate Mortgage?

No.

A recast does not normally change an adjustable-rate mortgage into a fixed-rate loan.

The mortgage remains subject to its existing:

• Interest-rate index.
• Margin.
• Adjustment schedule.
• Rate caps.
• Payment provisions.

Refinancing is usually required to replace an ARM with a fixed-rate mortgage.

Related resource: Fixed-Rate vs. Adjustable-Rate Mortgage.

Can a Recast Provide Cash to the Homeowner?

No.

A recast requires the homeowner to contribute money toward the mortgage balance.

It does not allow the homeowner to withdraw equity.

A borrower who needs funds for debt consolidation, renovations, investments, or liquidity may need to evaluate:

• Cash-out refinance.
• HELOC.
• Closed-end second mortgage.
• Securities-backed line of credit.
• Another financing strategy.

Related resources: Texas Cash-Out Refinance Rules and HELOC vs. Closed-End Second Mortgage.

Does a Recast Affect the Escrow Account?

A recast primarily changes the required principal-and-interest payment.

It does not automatically reduce:

• Property taxes.
• Homeowners insurance.
• Flood insurance.
• Other escrowed expenses.

The total payment can still change through the servicer’s normal escrow analysis.

For example:

• Principal and interest may decrease by $500.
• Property taxes may increase by $150.
• Insurance may increase by $50.
• Net total-payment decrease may be $300.

The homeowner should distinguish the recast’s principal-and-interest reduction from changes in taxes and insurance.

Related resource: Why Payments Increase After Closing.

Does a Mortgage Recast Save Interest?

The principal payment reduces the balance on which future interest is calculated.

That can produce substantial interest savings.

However, the homeowner’s future payment behavior matters.

If the borrower makes the large principal payment but continues paying the original monthly amount, the mortgage may be paid off earlier and total interest may be reduced more aggressively.

If the borrower recasts and pays only the new lower minimum, the loan generally remains scheduled through its original maturity date.

The principal reduction still saves interest, but lowering future payments uses part of that benefit to improve monthly cash flow.

A recast should therefore be evaluated based on the homeowner’s primary goal:

• Lower required payment.
• Faster payoff.
• Maximum interest savings.
• Greater monthly flexibility.
• A combination of these objectives.

Can You Continue Paying the Old Amount After Recasting?

Generally, yes, assuming the mortgage permits additional principal payments without penalty.

The recast lowers the required payment.

The homeowner may still voluntarily pay more.

This creates flexibility:

• During comfortable months, the borrower can continue paying the old amount.
• During difficult months, the borrower can make the lower required payment.
• Extra amounts can reduce principal and accelerate payoff.

The servicer should be instructed to apply additional funds correctly as principal.

Recast vs. Refinance When Current Rates Are Higher

A recast may be especially attractive when:

• The existing rate is substantially below current rates.
• The homeowner has cash available.
• The primary goal is reducing the required payment.
• No borrower needs to be removed.
• No cash needs to be withdrawn.
• The existing loan program is acceptable.
• The mortgage is eligible for recasting.

Refinancing into a higher rate may reduce the payment only if the new balance or term changes substantially.

That could sacrifice valuable existing financing.

Recast vs. Refinance When Current Rates Are Lower

A refinance may be more attractive when:

• Current rates are meaningfully below the existing rate.
• The savings justify the closing costs.
• The homeowner expects to keep the mortgage beyond the break-even point.
• The new term supports the homeowner’s goals.
• The borrower can qualify.
• The property value supports the transaction.

A homeowner with cash available could also compare:

• Recasting the existing mortgage.
• Refinancing without contributing the cash.
• Applying cash and refinancing the lower balance.
• Keeping the existing mortgage and making a principal payment without recasting.

Each choice produces a different payment, balance, liquidity position, and long-term interest cost.

Recast vs. Refinance Comparison

Interest Rate

With a recast, the existing interest rate remains.

With a refinance, the interest rate is replaced by the rate available on the new loan.

Loan Term

A recast generally preserves the existing maturity date.

A refinance creates a new term selected from the available mortgage options.

Required Cash

A recast usually requires a substantial principal payment.

A refinance may require cash for closing costs but does not necessarily require a large principal reduction.

Closing Costs

A recast typically has a relatively small servicing fee.

A refinance usually includes lender, title, appraisal, recording, and prepaid expenses.

Qualification

A recast generally does not require full credit and income underwriting.

A refinance normally requires complete mortgage approval.

Appraisal

A recast generally does not require an appraisal.

A refinance may require a valuation or appraisal.

Borrower Changes

A recast generally cannot add or remove borrowers.

A refinance can change borrowers when the remaining or new applicants qualify.

Cash From Equity

A recast does not provide proceeds.

A cash-out refinance may allow the homeowner to withdraw eligible equity.

Mortgage Program

A recast keeps the existing program.

A refinance may convert one mortgage type into another.

Mortgage Insurance

A recast does not automatically remove mortgage insurance.

A refinance may remove, add, or restructure mortgage insurance depending on equity and program requirements.

How to Compare the Monthly Payment

Do not compare only the current and proposed total mortgage payments.

Separate:

• Principal and interest.
• Mortgage insurance.
• Property taxes.
• Homeowners insurance.
• Flood insurance.
• Other escrowed expenses.

A recast affects principal and interest.

A refinance may affect principal, interest, mortgage insurance, and escrow structure.

Taxes and insurance generally remain costs of owning the property regardless of which option is selected.

How to Compare the Total Cost

A complete mortgage recast vs. refinance analysis should compare:

• Cash contributed.
• Recast fee.
• Refinance closing costs.
• New mortgage balance.
• Existing and proposed interest rates.
• Remaining and proposed terms.
• Monthly principal-and-interest payments.
• Mortgage-insurance changes.
• Interest over the expected holding period.
• Projected balance at the expected exit date.
• Emergency reserves after closing.
• Opportunity cost of cash contributed.

The analysis should be performed over the period you realistically expect to keep the mortgage.

Mortgage Recast vs. Refinance Example

Assume:

• Current balance: $450,000
• Current rate: 4.00%
• Remaining term: 25 years
• Available cash: $100,000

The homeowner considers two options.

Recast Option

• Principal payment: $100,000
• New balance: $350,000
• Rate remains: 4.00%
• Remaining term: 25 years
• Minimal servicing fee
• No full underwriting
• No new appraisal
• No new mortgage closing

Refinance Option

• New balance: $450,000 or another selected amount
• New market rate applies
• New term selected
• Closing costs apply
• Full qualification required
• Appraisal or valuation may be required

If current refinance rates are materially higher than 4.00%, the recast may preserve a valuable rate while lowering the payment.

If current rates are materially lower, refinancing could potentially produce greater savings.

The correct answer depends on the actual refinance rate, costs, term, and expected holding period.

Real Mortgage Recast vs. Refinance Scenarios

Buying Before Selling

A homeowner purchases a new property before the old home sells.

After the old home closes, the homeowner applies the proceeds to the new mortgage and requests a recast.

This lowers the payment without replacing the recently originated loan.

Large Annual Bonus

An executive receives a significant annual bonus.

The borrower wants to reduce the required payment but preserve a favorable existing mortgage rate.

A recast may accomplish that goal without the cost and underwriting of a refinance.

Rates Have Fallen

A homeowner has cash available, but current rates are substantially below the existing rate.

The borrower compares recasting with applying the cash toward a lower-balance refinance.

The refinance may provide both a lower rate and lower principal balance, but the closing costs must be recovered.

Removing a Former Spouse

A homeowner receives cash through a divorce settlement and wants to lower the payment.

However, the former spouse remains obligated on the mortgage.

A recast would lower the payment but would not remove the former spouse.

A refinance or another approved release process is required.

Self-Employed Borrower With a Favorable Existing Rate

A business owner has a favorable mortgage and sufficient cash to reduce the balance.

Current business income would make qualifying for a new mortgage difficult.

If the existing loan is eligible, a recast may reduce the payment without requiring full income underwriting.

FHA Borrower Seeking Lower Payment

An FHA borrower wants to make a large principal payment and recast the mortgage.

The servicer determines that the loan is not eligible for a standard recast.

The homeowner must compare keeping the existing loan, making the principal payment without recasting, and completing an eligible refinance.

Common Misconceptions

“Making a Large Principal Payment Automatically Lowers My Required Payment.”

A principal payment reduces the balance, but the required payment generally remains unchanged unless the servicer completes a recast.

“A Recast Gives Me a New Interest Rate.”

A recast normally keeps the existing rate.

“A Recast Is the Same as Refinancing.”

A recast keeps the existing mortgage. Refinancing replaces it.

“Every Mortgage Can Be Recast.”

Eligibility depends on the investor, mortgage program, servicer, and loan status.

“A Recast Removes Mortgage Insurance.”

The reduced balance may support a separate cancellation request, but recasting does not automatically eliminate mortgage insurance.

“A Recast Can Remove My Former Spouse.”

A recast generally does not change the borrowers obligated on the loan.

“Refinancing Is Better Whenever It Lowers the Payment.”

The payment reduction may come from extending the term.

Closing costs, total interest, and projected loan balance must also be considered.

“A Recast Uses All My Cash but Has No Risk.”

Using substantial cash to reduce the mortgage can weaken household liquidity.

The homeowner should preserve appropriate emergency reserves.

Related resource: When Should You Keep Cash Instead of Making a Larger Down Payment?

Questions to Ask Before Choosing

Before deciding between a mortgage recast and refinance, ask:

• Is my current mortgage eligible for recasting?
• What is my existing interest rate?
• What refinance rate is currently available?
• How much principal must I pay to recast?
• What is the recast fee?
• What would the new recast payment be?
• How many years remain on the existing loan?
• What refinance term would I select?
• What are the refinance closing costs?
• What is the refinance break-even period?
• Do I need to add or remove a borrower?
• Do I need cash from the property?
• Can mortgage insurance be removed?
• How much liquidity will remain after the principal payment?
• Would paying principal without recasting be better?
• How long do I expect to keep the home and mortgage?
• Is the loan affected by Texas home-equity rules?

Real Lender Perspective

The mortgage recast vs. refinance decision often becomes clear after identifying the homeowner’s actual objective.

If the goal is:

“Lower my required payment while preserving my 3% mortgage,”

a recast may be the obvious first option to investigate.

If the goal is:

“Remove my former spouse, change the loan program, and obtain a different term,”

a refinance may be necessary.

If the goal is:

“Pay off the mortgage as quickly as possible,”

making a principal payment without recasting may produce the strongest result.

The most common mistake is assuming that a large principal payment automatically changes the required payment.

The second is giving up an unusually favorable mortgage rate without calculating the refinance break-even point.

The third is placing too much cash into the property and leaving the household without adequate reserves.

A mortgage strategy should balance:

• Monthly payment.
• Interest expense.
• Liquidity.
• Loan term.
• Qualification.
• Flexibility.
• Long-term financial goals.

Who This Guide Is For

This mortgage recast vs. refinance guide may be especially helpful for:

• Homeowners with a large amount of available cash.
• Buyers purchasing before selling another home.
• Borrowers with a favorable existing mortgage rate.
• Homeowners seeking a lower required payment.
• Executives receiving a large bonus.
• Business owners with variable income.
• Homeowners receiving an inheritance.
• Borrowers considering a refinance.
• Divorced homeowners restructuring their mortgage.
• Homeowners trying to eliminate mortgage insurance.
• Borrowers approaching retirement.
• Homeowners deciding between liquidity and principal reduction.

Final Thoughts

A mortgage recast and refinance can both lower the monthly payment, but they solve different problems.

A recast may be appropriate when you want to:

• Keep the existing interest rate.
• Preserve the remaining loan term.
• Apply a substantial amount toward principal.
• Lower the required payment.
• Avoid full mortgage underwriting.
• Minimize transaction costs.

A refinance may be appropriate when you want to:

• Change the interest rate.
• Select a different loan term.
• Convert between mortgage programs.
• Add or remove a borrower.
• Replace an adjustable rate.
• Remove or restructure mortgage insurance.
• Access home equity.
• Accomplish something the existing loan cannot provide.

The best decision is not necessarily the option with the lowest immediate payment.

It is the strategy that produces the strongest balance of payment, interest cost, loan term, liquidity, and financial flexibility.

Before sending a large principal payment or applying for a refinance, compare all available structures and confirm that the existing mortgage is eligible for recasting.

Suggested Internal Links

• Rate-and-Term Refinance Guide
• Refinance Closing Costs Explained
• Refinance Break-Even Analysis
• How Soon Can You Refinance a Mortgage?
• Mortgage Amortization Explained
• Mortgage Interest Rates Explained
• Mortgage Insurance Explained
• Buying Before Selling Your Current Home
• Using Sale Proceeds From Another Home for a Down Payment
• When Should You Keep Cash Instead of Making a Larger Down Payment?
• Refinancing a Texas Home After Divorce
• Mortgage Approval When a Former Spouse Is Still on the Mortgage
• Texas Cash-Out Refinance Rules
• Closed-End Second Mortgage Guide
• HELOC vs. Closed-End Second Mortgage
• When Does Refinancing Make Sense?