Re-casting your mortgage is a little known strategy for homeowners to lower their monthly mortgage payments and save some money on interest without hefty fees or credit requirements of refinancing, according to this NY Times article.
The strategy works by paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal which lowers the monthly payments and the overall interest owed on the loan. The fee for this is typically only about $150 or more for this service since this is not a new loan, which also means there are no new closing costs or credit checks.
For more details about this interesting strategy, read the rest of the article. Sphere: Related Content