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Started By
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Is it possible to refinance home loan AND shortly thereafter recast the loan?
Posted on 3/10/20 at 4:23 pm
Posted on 3/10/20 at 4:23 pm
Our home loan is currently 4.5%. Definitely need to jump and take advantage of dropping a point+. No brainer.
But we had always planned to recast the loan with a large lump sum and lower our payments.
Can I do both, back to back?
But we had always planned to recast the loan with a large lump sum and lower our payments.
Can I do both, back to back?
3
Posted on 3/10/20 at 4:25 pm to okietiger
I was told by GMFS today, they have a one time recast over the life of the loan.
Posted on 3/10/20 at 4:26 pm to okietiger
Why not just do it at the same time? Come to closing with more cash and lower your loan amount. Having a lower LTV likely will help your Interest rate you could refi to as well.
Posted on 3/10/20 at 4:31 pm to HYDRebs
Is that a thing? Say you bring $75k to your closing at the time of refinancing. Obviously the lower rate will bring payment down but they'll also allow you to lump sum as well to bring it down further?
If I put down $75k, it simply shortens the loan payoff date but not the actual payment.
If I put down $75k, it simply shortens the loan payoff date but not the actual payment.
Posted on 3/10/20 at 4:44 pm to okietiger
You can figure all that out going through the refinance process. You can put whatever you want down on the refi and it will lower your amount borrowed and the monthly note.
Outside of personal preference, unless you need to put more cash down to get rid of PMI, it might not make much financial sense to do that.
Definitely be a good time to put some of that cash in the market and milk the low interest rate on the mortgage.
Outside of personal preference, unless you need to put more cash down to get rid of PMI, it might not make much financial sense to do that.
Definitely be a good time to put some of that cash in the market and milk the low interest rate on the mortgage.
Posted on 3/10/20 at 4:51 pm to okietiger
For example you had a loan of $175k currently. You wanted to refinance your loan now because the lower rates you think will be worth the closing costs. You could come to closing with the 75k + your closing costs and move forward with a loan of $100k at what ever amortization you chose as your loan product. That's the easiest way if you are going to do that rather than recasting.
Plus it will lower your closing costs using a lower loan amount.
Plus it will lower your closing costs using a lower loan amount.
Posted on 3/10/20 at 4:52 pm to Toula
quote:
Outside of personal preference, unless you need to put more cash down to get rid of PMI, it might not make much financial sense to do that.
No PMI. Just want a lower payment.
Posted on 3/10/20 at 4:53 pm to HYDRebs
quote:
For example you had a loan of $175k currently. You wanted to refinance your loan now because the lower rates you think will be worth the closing costs. You could come to closing with the 75k + your closing costs and move forward with a loan of $100k at what ever amortization you chose as your loan product. That's the easiest way if you are going to do that rather than recasting.
Plus it will lower your closing costs using a lower loan amount.
Sweet! Answers my question thanks!
Posted on 3/11/20 at 2:19 pm to okietiger
Obviously, a smaller sized loan will reduce the monthly payment.
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