A tool to bring down your buyers' monthly payments

Hello realtors, here we are helping folks get into their homes, find their homes close on them all of that. And I want to talk to you today about recasts.

It’s something that I’m actually surprised how little it’s talked about and known in our, in our culture. A recast is different from a refinance, because it’s not taking out a new loan, it’s simply applying a substantial sum of money to an existing loan and bringing the payments down. Typically, if you pay extra towards your mortgage, you shorten the term, so you pay it off faster, but the payments don’t actually change.

So if you’re talking to a buyer, and they’re saying that, for example, they would buy now, but they’re going to get a bonus, or they’re going to get an inheritance, some large sum of money down the road. And so they think that they should wait to buy until that moment, this is a useful tool to say, hey, you might be able to do a recast. And the way that works is it has to be at least $10,000. Okay, that’s the minimum, it can be more, and you can do it once per year. So let’s say your buyer buys the house and then a couple months later sells their departing residence, they can take those proceeds from the sale, do a recast and the payment on the new mortgage will truly come down. And that can help the long term financing of that new home without having to necessarily wait for it to sell first. So if you have any questions about it, let me know. And we’ll be in touch